Amaya announces Innova IPO in B2B spin-off

Amaya announces Innova IPO in B2B spin-off

Friday, March 27, 2015

Amaya Gaming has continued the process of selling off its B2B assets by announcing plans to spin off its Diamond Game Enterprises subsidiary.

The Canadian gambling group – which acquired Pokerstars for $4.9bn (€4.5bn) last year – announced in January that it was looking at ways of raising capital to pay off debts.

It has already sold off the Ongame Network and has now announced an initial public offering (IPO) of its newly-formed subsidiary Innova Gaming Group, which will hold all the shares of software developer Diamond Game.

“The decision to spin off its subsidiary Diamond Game is consistent with Amaya's previously announced intention to explore various strategic opportunities to divest its B2B assets, to maximise shareholder value by facilitating the repayment of indebtedness and/or the repurchase and cancellation of Amaya's common shares,” the company stated.

Amaya acquired Diamond Game, which is headquartered in Los Angeles, California and has 69 employees, in February 2014 for $25m.

Some 75 per cent of Diamond's $18.5m of turnover last year came from lottery activities, with its main product being the Lucky Tab instant ticket vending machine.

Amaya sold B2B poker network Ongame to gaming solutions company NYX Gaming Group in November 2014 for a sum “equivalent to eight times Ongame’s 2015 EBITDA”.

In the same month, Amaya announced a strategic review of its B2B gaming solutions business, Cadillac Jack, which is worth an estimated $500m.

Amaya reiterated that the review of Cadillac Jack and its other B2B assets was ongoing in January when it said: “The corporation intends to explore various strategic opportunities to divest its other B2B assets.

“The intention is to examine strategic alternatives for these B2B assets… There is no timeline for this process.”


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