1 Oct 2012 08:00
1 October 2012
bwin.party digital entertainment plc
('bwin.party' or the 'Company')
Sale of Ongame to Amaya Gaming Group Inc. ('Amaya Gaming')
Highlights:
·; Sale of Ongame, a leading B2B online poker network, to Amaya Gaming for up to €25.0 million on a cash-free and debt-free basis
·; Initial consideration of €15.0 million payable in cash on completion expected during the fourth quarter of 2012
·; Additional payments of up to €10.0 million, will become payable if there is regulated online gaming in the United States within the next five years
·; Completion is subject to the standard conditions for a transaction of this type, including regulatory approvals
bwin.party today announces that it has agreed to sell Ongame, its business-to-business ('B2B') online poker network, to Amaya Gaming Group Inc. ('Amaya Gaming') for a total cash consideration of up to €25.0 million.
Contingent consideration will become payable by Amaya Gaming if there is regulated online gaming in the United States within five years of completion. The exact amount of the contingent consideration will depend upon the extent of the regulation based upon the number of states that regulate and the total population covered.
The transaction is subject to the normal terms and conditions for a transaction of this type as well as certain regulatory approvals and is expected to complete during the fourth quarter of 2012. The management of Ongame will transfer with the business and the net sale proceeds will be used by bwin.party for general corporate purposes.
Information on Ongame
Ongame Network Ltd ('Ongame') is one of the world's largest B2B poker providers. The global network includes 25 of the e-gaming industry's strongest brands that are owned by a total of 19 operators. Ongame also operates regional networks in France and Italy. The company offers both operators and their players a wide variety of cash games and tournaments to choose from. Further information about Ongame can be found at www.ongame.com.
Commenting on today's announcement, Jim Ryan and Norbert Teufelberger, the Co-CEOs of bwin.party, said:
"The sale of Ongame conforms to our strategy, especially as we move closer to launching our single, proprietary technology platform in the next few months. We believe Ongame will fit well into Amaya Gaming and has an excellent future ahead."
David Baazov, Chief Executive Officer of Amaya Gaming, said:
"The acquisition of Ongame bolsters Amaya Gaming's product portfolio, transforming Amaya into a leading provider of gaming platforms. Amaya looks forward to unleashing Ongame's technology to its full potential through the leveraging of our many B2B relationships and delivering new partners and players to the network. The Ongame platform is scalable, proven and secure and is well suited for quick deployment in new regulated markets. We're excited about the wide range of opportunities this acquisition makes possible for us as we execute on our vision."
bwin.party was advised by McQueen Limited.
Contacts:
bwin.party digital entertainment plc
Investors
Peter Reynolds +44 (0) 20 7337 0100
Media
John Shepherd +44 (0) 20 7337 0100
Notes for Editors
About bwin.party
bwin.party digital entertainment plc (LSE: BPTY) is a global online gaming company, formed from the merger of bwin Interactive Entertainment AG and PartyGaming Plc on 31 March 2011. Incorporated, licensed and regulated in Gibraltar, the Group also has licences in France, Italy, Spain and Denmark. With offices in Europe, India, Israel and the US, the Group generated total pro forma revenue of €816.0m and pro forma Clean EBITDA of €199.3m in 2011. bwin.party commands leading market positions in each of its four key product verticals: online sports betting, poker, casino and bingo with some of the world's biggest online gaming brands including bwin, PartyPoker, PartyCasino and Foxy Bingo. The Group's scale, technology and strong portfolio of games collectively differentiate its customer offer from those of its competitors. bwin.party is a constituent member of the FTSE 250 Index and the FTSE4Good Index Series, which identifies companies that meet globally recognised corporate responsibility standards. For more information about bwin.party, please click here.
About Amaya Gaming
Founded in 2004, Amaya Gaming Group Inc. is a technology based gaming provider for the regulated gaming industry. An expansive global organization, present in North America, Latin America, Europe, Africa and Asia, Amaya is an innovator in the gaming world. Headquartered in Montreal, Canada, Amaya provides a host of services and solutions that range from: online and mobile gaming casino games and platforms, traditional and mobile lotteries, networked electronic gaming systems, hospitality in-room entertainment systems, management systems, content suites, advisory and management services, and integrity monitoring and auditing systems for the regulated gaming markets. For more information please visit www.amayagaming.com or www.amayaonline.com.