NYX to float after Ongame deal

NYX to float after Ongame deal

Monday, November 24, 2014 Totally Gaming

Gaming solutions company NYX Gaming has announced plans to float on the Toronto stock market after completing the acquisition of Ongame Network.

NYX bought the B2B poker network from Canadian gaming operator Amaya Gaming, saying the Ongame business will complement its own casino, bingo and lottery solutions both in Europe and the US.

NYX Gaming said it had also filed a preliminary long form prospectus with the securities commissions of each of the provinces and territories of Canada in connection with the initial public offering of its ordinary shares.

Matt Davey, chief executive of NYX Gaming, Matt Davey, said: “Ongame is renowned in the gaming industry for its excellent poker products, platform and service.

“Not only does this acquisition provide NYX Gaming Group with one of the best poker products in the industry, it also gives us access to products that are regulated in several jurisdictions, and more importantly a talent pool that can help grow all parts of our business.”

The purchase price for Ongame is equivalent to eight times Ongame’s 2015 earnings before interest, tax, depreciation and amortisation, less any required working capital.

Concurrently with the deal, Amaya invested in NYX Gaming through its subscription for a $10m (€8.1m) unsecured convertible debenture, thereby expanding the existing relationship between the parties.

The convertible debenture is set to mature two years from the date of issuance and will bear an interest at 6 per cent per annum, payable at maturity.

“The addition of Ongame is in line with our objective to continue to grow in Europe and the US," Davey said.

“We are committed to the integration and development of Ongame’s B2B poker network. Further, through this transaction we will strengthen our relationship with one of the most successful gaming companies in the world, the Amaya Gaming Group.”

NYX said the IPO is to be underwritten by Canaccord Genuity Corp, as lead underwriter, and Cormark Securities, National Bank Financial, Dundee Securities, Global Maxfin Capital Inc and Mackie Research Capital Corporation.
 

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