Amaya completes 46m Wagerlogic sale
Toronto-based Goldstar Acquisitionco snaps up InterCasino brands
Amaya Gaming has completed the sale of its Malta-based B2C business WagerLogic to Goldstar Acquisitionco in a deal worth up to CA$70m (46m).
The sale, which rids Amaya of its only B2C operations, was initially announced in October 2013 and will see Goldstar take control of WagerLogic’s portfolio of online gaming brands.
The WaterLogic business comprises the InterPoker, InterCasino and VIPCasino brands and generated $8m in revenue and $1.8m in net income for the nine-month period ended 30 September 2013.
Amaya had acquired the Malta-licensed business in April 2012 when it purchased WagerLogic’s parent company CryptoLogic, however it has since spoken of its intentions to focus primarily on being a B2B supplier of diversified gaming solutions.
Goldstar, whose CEO is ex-CryptoLogic general counsel John FitzGerald, raised the capital to fund the acquisition by selling all outstanding and common shares in the company to capital pool company Aumento Capital II.
It will pay an initial cash consideration of $52.5m, and Amaya will receive additional payments if the business meets specific revenue targets both two and three years after purchase.
In its most recent financial results posted in November Amaya revealed a 120% year-on-year growth in revenues for the third quarter of 2013, a period which saw the firm launch its first products into the US real-money egaming market.
Total revenues for the quarter reached $40.2m compared with $18.3m in the same period last year, while adjusted EBITDA to $14.64m from $6.06m in Q3 2012.