Bwin.Party has sold the Ongame Network to Amaya Gaming. The network sold for around $19 million dollars but the price could go up if the U.S. regulates online poker in the next few years. The deal comes months after Shuffle Master pulled out of a similar deal to purchase the network. Ongame is home to several different poker rooms including Betsson, Betfair and Coral. The Press Release is below.
1 October 2012
bwin.party digital entertainment plc
‘bwin.party’ or the ‘Company’)
Sale of Ongame to Amaya Gaming Group Inc. (‘Amaya Gaming’)
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 http://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.