Sportech offloads stake in NYX Gaming joint venture
Pools and sports wagering operator Sportech has completed the sale of its 50% stake in Sportech-NYX Gaming (SNG) to joint venture partner NYX Social Gaming.
The acquisition deal is worth a total consideration of up to C$22.9 million (€16.8 million/US$18.3 million), which will in turn provide Sportech with an estimated pre-tax profit of C$16.8 million on its investment.
Sportech had been running the joint venture in partnership with NYX Social Gaming, a subsidiary of online gaming and technology provider NYX Gaming.
The joint venture with NYX Gaming enabled Sportech to launch its first online gaming activities in New Jersey through a deal with Resorts Casino Hotel.
However, Sportech has now opted to cash in on the success by selling its 50% stake, which includes one customer contract, online casino software and a number of employees.
Sportech said that proceeds from the sale would be used to “accelerate its near-term development plans whilst retaining a material interest in casino and poker online gaming through an equity stake in NYX”.
“We are pleased to have reached this agreement with NYX, generating a significant return for the group in a short space of time,” Sportech chief executive Ian Penrose said.
“The structure of the deal enables us to reinvest in our US growth activities in the sports gaming market, whilst retaining a material stake in the future of online casino gaming in North America.
“NYX is endeavouring to build a market leading position and we look forward to sharing in this opportunity with them.”
Matt Davey, chief executive of NYX, added: “We've enjoyed a strong partnership with Sportech and look forward to opportunities to work together in the future.”
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