Tuesday October 22,2013 : AMAYA GAMING TO DIVEST WAGERLOGIC
Reinforces focus on B2B strategy
Amaya Gaming Group has announced the proposed sale of its B2C subsidiary WagerLogic Malta Holdings Ltd to Capital Pool Firm Aumento Capital II Corporation.
Goldstar Acquisitionco Inc., an entity incorporated in September 2013 for the purpose of acquiring all of the outstanding shares of WagerLogic, will complete a business combination, referred to as the Amalgamation, where all issued and outstanding securities of Goldstar will be exchanged for securities of Aumento.
Immediately preceding the Amalgamation, Goldstar intends to complete the purchase from a subsidiary of Amaya Gaming Group Inc. of all of the outstanding shares of online casino operator WagerLogic Malta Holdings Ltd. for a cash consideration of $70 million.
An additional earn-out agreement forms part of the deal based on the achievement of predetermined revenue targets on the second and third anniversary of the deal closing.
Amaya will continue to supply WagerLogic with software, services and content to power its online casino operations, pursuant to a services agreement.
“The proposed sale of these business-to-consumer assets is consistent with our strategy of focusing primarily on being a single source business-to-business supplier of diversified gaming solutions to gaming operators,” said David Baazov, chief executive officer of Amaya Gaming Group Inc. “We anticipate this divestiture will allow us to expand our existing relationships and cultivate new ones with online gaming operators.”
WagerLogic, an indirect subsidiary of Amaya, was acquired by the Group in April 2012 when it bought parent company CryptoLogic Limited. WagerLogic comprises two wholly-owned subsidiaries, CryptoLogic Operations Limited (Malta) and WagerLogic Alderney Limited whose head offices are located in Malta and Guernsey.