Uniting Forces: NYX Gaming Acquires Openbet for £270 MillionPublished April 5, 2016 by Lee R
With the backing of William Hill, NYX Gaming Group acquires Openbet for £270 Million.
With no small help from the backing of William Hill, NYX Gaming Group has acquired the top regulated business-to-business sportsbook and digital gaming supplier in iGaming for £270 million.
The transaction unites the two premier digital gaming suppliers in the world to deliver leading end-to-end solutions for regulated gaming markets. Unanimously approved by the boards of both buyer NYX and seller Openbet boards, the deal includes repayment of an existing third party debt of GBP 95.4 that Openbet gets out from under upon consummation.
Help from Hill
Along with Sky Betting and Gaming, William Hill will back the deal via preferred equity investment of £100 million, expecting adjusted earnings per share to bolster free-cash-flow.
William Hill's involvement further extends to the implementation of a development program engaging NYX and Openbet to further modernize Openbet's Technology.
The financing model is an innovation as well, with new senior secured credit facilities converting preference shares into new CAD dollar units of investor value along with new unsecured convertible debentures offered as "bought deal" private placement offerings.
Harnessing the Benefits
Openbet's proven track record of revenue and adjusted EBITDA growth is the source of NYX's optimism regarding improvements after adjustment. Based on the annualized adjusted EBITDA for the three month period ending December 31, 2015, Openbet is being purchased at an attractive multiple of 8.4x EBITDA. NYX expects to generate cost synergies of C$4.0 to C$6.0 million and revenue synergies of C$8.0 to C$10.0 million year-on-year from the adaptations.
The appeal of Openbet as a holding includes the leading market share of OpenBet's sportsbook platform and exclusive regulation in regulated markets and industry-leading technology that absorbed in 2014 the processing of a massive 11 billion transactions at a rate of up to 56 million transactions per 24-hour period.
Benefits to NYX
The sportsbook platform will expand NYX's presence in the U.K. and other regulated global markets where Openbet is already licensed and operating effectively.