Amaya in £14.5m Chartwell deal
A subsidiary of Canadian solutions provider Amaya is set to acquire all existing common shares in Chartwell.
Amaya has entered into an agreement with Chartwell to effectively takeover the business in a deal valued at CA$22.8m (£14.5m).
Under the terms of the agreement, a wholly-owned subsidiary of the Canadian solutions provider “ licensed in Kenya and the Dominican Republic “ is set to acquire all existing common shares in its competitor.
According to a release issued jointly by the two companies, “Chartwell and Amaya will continue to focus on their existing businesses with the greatly expanded products, technologies and expertise resulting from the combination.”
In exchange for each of their shares in Chartwell, shareholders will receive CA$0.875 in addition to 0.125 common shares in Amaya.
Darold H Parken, president and CEO of Chartwell, said the resulting company would have a “significantly expanded product range, delivery channel capability and market reach”.
According to the Chartwell board, which recently saw the chief executive and sales director of software arm Chartwell Games depart for CyberArts Alderney and Mfuse respectively, the arrangement is “in the best interest of Chartwell.”
Consequently, the board unanimously approved the agreement with Amaya and recommended that shareholders do the same.A meeting of Chartwell shareholders is expected to follow in early July, paving the way for the completion of the transaction in the same month.
Last month eGaming Review reported that Amaya had secured a nearly-5% stake in another Canadian-founded company, Cryptologic. Following this latest announcement CEO David Baazov said: “The proposed transaction represents a significant step for Amaya in our strategy to accelerate growth in the regulated interactive gaming industry.”