Amaya Online Gambling Divests Itself Of B2B Sectors

Published Thursday, April 09, 2015 -
Amaya Online Gambling Divests Itself Of B2B Sectors

The management of a huge company that is now the largest online poker offering in the world  Canadian owned Amaya Gaming is a task not for the faint of heart. The cash flow concerns as well as the management of debt while maintaining the numerous divisions’ progress can be an onerous enterprise.

Amaya has been following a strategy of steady as she goes but at the same time the firm is full steam ahead. The recent sale of Amaya’s business to business subsidiaries Chartwell Technology and CryptoLogic Limited is going to keep the ball rolling. Gaming solutions provider NYX Gaming Group has entered into a share price agreement to acquire the entire issued share capital of Amaya Inc. for an estimated consideration of $150 million CND  (€111.3 million/US$119.5 million).

The software divisions had a reported revenue of $17.4m and an earnings loss of $7.8m in the 12 months ending Dec. 31, 2014. The NYX game library will now consist of around 650 titles adding 350 titles from the Amaya Inc. software portfolio. This deal completes the strategy Amaya embarked on to divest itself of its B2B subsidiaries in order to pay down debt. Other sales of Amaya properties include the American Gaming Systems purchase of  Amaya’s Cadillac Jack gaming device firm. Amaya also sold its Ongame poker network to NYX last November, while also taking a $10m ownership stake in NYX.

Amaya acquired Chartwell Technolgies for $23 million in 2011, then it purchased Cryptologic the following year for about $36 million. The Online Gaming network deal for a mere $15 million presented a formidable buying spree for the Montreal based company. Amaya has made a tidy profit on the acquisitions and has regained some monetary momentum needed to enter the American online gambling market. PokerStars is still waiting for New Jersey regulatory approval and has its sights set on the possibility of supplying online poker to other areas of the USA should more jurisdictions become legal.





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