It was recently announced that Bwin.Party has sold the Ongame Poker Network to Amaya Gaming of Canada. The deal is worth up to $32.2 million and an initial payment of $19.3 million is payable to Bwin in cash on completion.
This amount is expected during the fourth quarter of this year but is subject to conditions such as regulatory approval. Amaya is also supposed to pay additional payments of up to $12.9 million which will be paid if online gaming is regulated in the United States over the next five years.
David Baazov, the Chief Executive Officer of Amaya Gaming, commented in a statement on the subject which read: “The acquisition of Ongame bolsters Amaya Gaming’s product portfolio, transforming Amaya into a leading provider of gaming platforms.”
Baazov went on to state: “Amaya looks forward to unleashing Ongame’s technology to its full potential through the leveraging of our many B2B relationships and delivering new partners and players to the network. The Ongame platform is scalable, proven and secure and is well suited for quick deployment in new regulated markets. We’re excited about the wide range of opportunities this acquisition makes possible for us as we execute on our vision.”
The Ongame poker network is home to many online poker rooms including Coral, Betfair and Betsson. It will be interesting to see if the rooms will remain on the network after the switch. Below is a portion of the press release of the new deal:
Sale of Ongame to Amaya Gaming Group Inc. (‘Amaya Gaming’)
“bwin.party today announces that it has agreed to sell Ongame, its business-to-business (‘B2B’) online poker network, to Amaya Gaming Group Inc. (‘Amaya Gaming’) for a total cash consideration of up to €25.0 million.
Contingent consideration will become payable by Amaya Gaming if there is regulated online gaming in the United States within five years of completion. The exact amount of the contingent consideration will depend upon the extent of the regulation based upon the number of states that regulate and the total population covered.
The transaction is subject to the normal terms and conditions for a transaction of this type as well as certain regulatory approvals and is expected to complete during the fourth quarter of 2012. The management of Ongame will transfer with the business and the net sale proceeds will be used by bwin.party for general corporate purposes.”
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