Amaya targets M&As, secondary listing

Amaya targets M&As, secondary listing

Tuesday, March 31, 2015 Totally Gaming

Amaya chairman and CEO David Baazov today (Tuesday) predicted that the Canadian gaming company would make further strategic acquisitions in the coming months after posting a near eight-fold increase in quarterly adjusted earnings following the takeover of PokerStars last year.

Just a day after confirming the sale of its Cadillac Jack B2B land-based gaming solutions business to AGS, a designer and manufacturer of gaming products on the casino floor, for C$476m (€346m/$375m), Amaya revealed that adjusted profits for the fourth quarter of 2014 rose to C$85.7m, up from C$11.1m a year earlier.

The figures were undoubtedly boosted by the acquisition of PokerStars and sister brand Full Tilt from Rational Group in the second half of 2014, with Baazov hopeful that the company will smash through the C$1bn turnover threshold in 2015.

In recent weeks, Amaya, which is also planning to seek a secondary listing on the Nasdaq stock exchange, has been linked with a takeover bid for online gaming operator bwin.party, and Baazov told investors on a conference call that he expects further expansion.

“Going forward, Amaya intends to acquire new customers and gain online gaming market share through the continued expansion of the B2C business in other verticals, including sports betting, casino, social gaming and daily fantasy sports, which we expect will supplement our current growth plans for our core poker business,” Baazov said.

“Amaya currently anticipates executing on this strategic direction through both organic development and strategic mergers and acquisitions.

“As our B2C business is Amaya’s core growth platform, we have initiated a process to identify opportunities to divest our B2B assets, with the aim of facilitating their future growth and maximising value for Amaya shareholders.

“Our recent announcements about the planned divestiture of Cadillac Jack and spinoff of Diamond Game is in line with this strategy, and we anticipate providing updates on plans for our other B2B assets in the near future.”

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