William Hill drops opposition to Scientific Games-NYX deal
UK bookmaker says it has reached a new agreement with SciGames that protects its technology roadmap and partnership with OpenBet
William Hill has dropped its opposition to Scientific Games’ acquisition of NYX, after the three firms reached a new commercial agreement that satisfied all parties.
Hills had original been threatening to block the deal over fears it would lose its priority on OpenBet’s technology roadmap.
However, the firm said this morning a new commercial agreement had been reached which would “safeguard William Hill’s technology roadmap and relationship with NYX”.
Specific details of the arrangement were not disclosed.
The agreement ends a dispute which had seen all three parties file law suits against one another, with SG accused of “aggressive M&A tactics” and Hills accused of “the business equivalent of a shakedown”.
Following today’s agreement all parties have dropped their litigation against each other, while Hills also agreed to sells its ordinary shares and convertible preference shares in NYX to SG.
Hills will receive CAN$2.40 a share for the 6.8 million ordinary shares it owns in NYX and circa £87m for its convertible preference shares, a significant premium on what it would have received otherwise.
The UK bookmaker’s CEO Philip Bowcock said: “We are pleased to expand our commercial relationship with Scientific Games in the US market which offers considerable potential should the Supreme Court ruling on PASPA, which is expected next year, provide states with the power to regulate sports betting.
“We will unconditionally support Scientific Games in their acquisition of NYX and we have no hesitation in recommending other shareholders to do the same.”
Scientific Games said its shareholders meetings to approve the acquisition of NYX will still be held on 20 December, 2017 in Las Vegas, and it “encourages all shareholders of NYX to cast their votes in favour of the Acquisition.”