Amaya spins-off B2C business WagerLogic for $70m
Canadian supplier sells InterPoker and InterCasino brands to Goldstar to strengthen its B2B focus
Egaming supplier Amaya Gaming Group has agreed to spin-off its Malta-based B2C business WagerLogic to Goldstar Acquisitionco Inc. for an initial cash consideration of $70m.
The deal is expected to close on or around 31 December 2013, with the share purchase including an earn out agreement under which Amaya is due to receive additional payments if the business meets specific revenue targets both two and three years after purchase.
A minimum revenue guarantee agreement has also been included, under which Toronto-headquartered Goldstar will receive repayments should certain revenue targets, approximately in line with recent audited revenues, are not achieved.
The deal will not affect supplier agreements, with subsidiaries of Amaya to continue providing software, services and content to WagerLogic’s online operations.
Goldstar, which according to its website is “a company focused on the acquisition and operation of amazing gaming entertainment”, has raised the capital to fund the acquisition by selling all outstanding and common shares in the company to capital pool company Aumento Capital II.
David Baazov, CEO of Amaya Gaming Group, said the sale will allow the company to expand its existing relationships with online gaming operators while also developing new ones.
“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,” Baazov added.
Amaya acquired the business, which comprises the InterPoker, InterCasino and VIPCasino brands, in April 2012 when it purchased WagerLogic’s parent company CryptoLogic.
Goldstar is headed by John FitzGerald, who was general counsel at CryptoLogic before leaving the company to co-found social gaming community Virgin Gaming.