Tuesday, November 25, 2014

Amaya Gaming to obtain PokerStars for almost $5 Billion



AmayaiGaming Business – Canadian gaming provider Amaya Gaming is about to procure Rational Group, the parent company of the world’s leading online poker site PokerStars, for US$4.9bn (€3.6bn).

Amaya struck the handle Oldford Group Limited, the holding company for Rational Group and can acquire 100% of the issued and outstanding shares of Oldford Group in an all-cash transaction for an aggregate purchase price, which incorporates certain differed payments and is subject to other customary adjustments.

The transaction may be financed by a mixture of money on hand, new debt, and a personal placement of subscription receipts, common shares and non-voting convertible preferred.

PokerStars’ senior management team will remain with the gang however the deal means Oldford shareholder and PokerStars chief executive Mark Scheinberg “will resign from all positions with Oldford Group and its subsidiaries”.

With Mark Scheinberg’s father and PokerStars founder Isai Scheinberg having stepped down from any involvement with the crowd as a part of its dealings with the U.S. Department of Justice, the trail have been cleared for the corporate to potentially return to the U.S. market, starting with the state of latest Jersey, where Amaya has casino content deals with various licensed operators.

Rational Group recorded revenues of US$1.1bn and altered EBITDA of US$420m in 2013, up on 2012′s US$976m and US$342m respective figures. The group’s 2013 cash flow stands at US$317m.

Amaya said that the deal would “be immediately accretive to earnings and supply strong cash flow from operations”.

“This is a transformative acquisition for Amaya, strengthening our core business-to-business operations with a client online powerhouse that creates a scalable global platform for growth,” Amaya chief executive officer David Baazov said.

FULL STORY

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