NYX Gaming, a leading digital gaming supplier, has completed the acquisition of rival sports betting platform provider OpenBet.
On Monday, the Toronto-listed company issued a market update which confirmed that the £270million co-funded deal has been finalised, more than a month after it was originally announced.
On April 4th, NYX Gaming announced that it is acquiring 100% of OpenBet’s assets from private equity Vitruvian Partners. The online technology company received a contribution of £80million from William Hill, a UK betting operator, and an additional £20million from Sky Betting & Gaming.
The acquisition will have NYX Gaming repay OpenBet’s outstanding £95million corporate debt.
In exchange, NYX Gaming will get over 2,000 desktop and mobile game titles on the OpenBet platform, and a combined workforce of 1,100 staff based in 14 countries across Europe, North America, Asia, New Zealand and Australia.
Matt Davey, CEO of NYX Gaming, said that acquiring OpenBet marked the “next phase of the company’s growth,” enabling the firm to service “exciting player-driven solutions across all verticals and channels.”
Davey said “We now turn our focus to planning and executing the strategy to leverage the collective strengths and benefits of scale that the combined business brings to our customers and shareholders.”
Further good news for NYX Gaming was the successful acquisition of OpenBet which saw its revenue almost double in 2015 following a year packed with new client deals and acquisitions.
Revenue for 2015 was up 92% to $53.3million and gross profits gained 86% to $44.8million, but NYX Gaming also recorded a net loss of $8.4million partly due to the troubled Ongame online poker product, which was worse than the loss of $7million in 2014.
In an earlier interview, Davey said that the company hopes to convince Amaya, who sold Ongame in 2014, to switch its BetStars sports betting product to the OpenBet platform. The executive admitted that there is no guarantee that Amaya will abandon its existing sports platform, but with OpenBet powering a host of the UK market’s biggest bookies, “you would have to imagine [Amaya] would consider our product favourably.”
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