May 26th, 2016
Earlier this week, the NYX Gaming Group - proud parent company of the heralded software studio NextGen - confirmed their acquisition of OB Topco Ltd., owners themselves on one of the world's leading online betting software suppliers, OpenBet.
The acquisition of 100% of OpenBet's shares came at a cost of £270 million for the NYX Gaming Group, who only secured the financial means through the help of some familiar topnotch operators in William Hill and Sky Betting & Gaming. WH and Sky combined to invest £100 million to help finance the high-priced acquisition for NYX.
The high price tag came after a few counter pursuits from competitors but ultimately stayed within a reasonable range for the three brands to combine to secure the deal for NYX Gaming.
The deal was agreed upon by the four parties in April 2016 but wasn't confirmed till earlier this week when the NYX Gaming Group made the official announcement. The deal sees NYX acquiring all 100% of OpenBet's issued and outstanding shares, previously held by Vitruvian Partners and its co-investors.
To ensure the deal's legitimacy, the acquisition was financed through a new subsidiary called NYX Digital Gaming (OB Holdings) Limited. The deal also required a private placement of new unsecured convertible debentures as well as a 'bought deal' private placement offering of subscription receipts.
The final step was NYX closing the issuance of Convertible Preferences shares to WH and Sky. The £100 million from the two operators to help finance the OpenBet acquisition breaks down as £80 million from WH and £20 million from Sky which translates to about a 19% stake of shares for WH and a 5% stake for Sky.
Unsurprisingly, the NYX Gaming Group wasn't the only major software supplier looking to acquire OpenBet. Having established themselves at the forefront of the online betting software world, OpenBet was drawing attention from a heap of serious investors with one perspective buyer standing out above the rest, Playtech.
Playtech is considered by most to be the world's most prominent and successful online software supplier. They tout an believable list of clients, a wealth of award-winning subsidiaries and endless industry recognition. Playtech was willing to use their clout to acquire OpenBet after missing out on a few desired acquisitions in 2015.
Fortunately for NYX, despite many claiming Playtech as the favourite to secure the acquisition, Playtech's talks with OpenBet fell through, opening the door for NYX Gaming and their group of recognizable investors.
NYX Gaming explodes to 200+ gaming operators with the OpenBet acquisition. Touting hundreds of clients across all product disciplines is something very few suppliers can claim and something NYX will surely prominently display across all its media outlets.
But it wasn't just the clients OpenBet claimed that influenced investors' intrigue as OpenBet will be adding 700 unique titles to the now 2000 titles featured on the NYX platform. Matt Davey, NYX's Chief Executive, explained the OpenBet acquisition is just another step for NYX toward continued industry supremacy:
"The acquisition reinforces our position as the leading provider of regulated B2B digital gaming solutions."
To see what has NYX Gaming Group throwing almost £300 million to acquire OpenBet's offerings, check out William Hill Sports and their OpenBet powered online bookmaker.