iGaming Business – Canadian gaming provider Amaya Gaming is ready 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 maintain 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 contains certain differed payments and is subject to other customary adjustments.
The transaction could be financed by a mix 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 crowd 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 gang as a part of its dealings with the united states Department of Justice, the trail was cleared for the corporate to potentially return to the U.S. market, starting with the state of recent Jersey, where Amaya has casino content deals with various licensed operators.
Rational Group recorded revenues of US$1.1bn and changed 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 shopper online powerhouse that creates a scalable global platform for growth,” Amaya chief executive officer David Baazov said.
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