Scientific Games to acquire NYX for $630m
Scientific Games has entered into a definitive agreement to acquire NYX Gaming Group for approximately CAD$775 (€528.3m/US$630m).
In a statement confirming the deal, Scientific Games said that the acquisition will lead to the creation of a “global digital gaming and lottery powerhouse” and also strengthen its “leadership position” in the market.
Scientific Games said the agreement will also expand its portfolio of services with the addition of a sport betting platform, as well as accelerate the growth of its interactive business and support the overall NYX operation.
Kevin Sheehan, president and chief executive at Scientific Games, said: “This important transaction creates a global gaming and lottery powerhouse.
“Scientific Games will be a stronger industry leader offering one of the broadest end-to-end portfolios of engaging content, innovative technologies and digital products and services across gaming and lottery.”
The transaction will be financed with both cash on hand and debt, and, subject to approval from each company’s board of directors, the deal is expected to close in the first quarter of 2018.
In connection with the deal, certain shareholders who together hold in the aggregate approximately 17% of NYX’s fully diluted shares, have entered into voting support agreements to vote all of their shares in favour of the acquisition.
Should the deal go through, Matt Davey, who currently serves as chief executive of NYX, is expected to oversee a newly created ‘Digital Gaming and Sports’ arm at Scientific Games.
Speaking about the agreement, Davey said: "Scientific Games’ acquisition of NYX will provide immediate and compelling cash value for our shareholders, expand the products and solutions we are collectively able to offer our customers and accelerate the execution of our long-term strategic plan.
“We will now have scale, content and product development capabilities, complementary global infrastructure and access to an expanded customer base.
“We believe Scientific Games is the ideal partner for NYX, and we look forward to working alongside the talented Scientific Games team.”