NYX buys OpenBet

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NYX Gaming Group is to acquire OpenBet in a £270m deal, funded in part by a joint £100m investment from William Hill and Sky Betting and Gaming.

The share purchase agreement will see NYX acquire 100 per cent of the issued and outstanding shares of OpenBet from funds managed by Vitruvian Partners, its co-investors and management.

The boards of both companies have unanimously approved the transaction. The total consideration of £270m includes repayment of OpenBet’s £95.4m existing third-party debt.

William Hill and Sky Betting and Gaming are partially funding the transaction through a preferred equity investment of a total of £100m.

William Hill will provide £80m towards the takeover and is investing another £10m in equity in NYX, while SkyBet is to contribute £20m to the acquisition of OpenBet.

William Hill has engaged NYX and OpenBet in a development programme to further modernise OpenBet’s technology. The programme will take approximately three years to complete and is estimated will generate £10m in EBITDA to NYX during that period.

Matt Davey, CEO of NYX, said of the deal: “The acquisition of OpenBet by NYX completes the portfolio of industry leading products and services we offer to our customers.

“They are two highly complementary businesses with key strengths in regulated markets, technology services and gaming content. It positions NYX as the leading provider of B2B betting and gaming solutions on a global scale.”

Jeremy Thompson-Hill, CEO of OpenBet, added: “The joining of OpenBet and NYX is a natural union born out of synergies in product, the customer base and, importantly, culture. It will enable us to leverage our knowledge, strengths and resources to deliver our customers with best-in-class products and technologies across all verticals and channels.”

James Midmer, head of corporate communications at Paddy Power Betfair, one of OpenBet’s key customers, said: “We look forward to working with NYX and OpenBet and are confident that the combined group will continue to deliver a great product and service.”

Subject to regulatory and stock exchange approvals, the transaction is expected to close in May 2016.

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