Amaya to Sell WagerLogic
The Canadian Amaya Gaming Group Inc. has plans to sell its subsidiary, WagerLogic, to Goldstar Acquisitionco Inc., which will in turn be purchased by Aumento Capital II Corporation. The outstanding shares of WagerLogic Malta Holdings Ltd. will be purchased by Aumento for a $70 million cash consideration.
It will take a few months for the process of Amaya selling WagerLogic to be completed. The purchase of WagerLogic is set to be complete either on, or near, December 31st, 2013. The purchase of the company's shares come with an agreement by which Amaya will be paid potential additional cash considerations if WagerLogic achieves certain financial targets on the second and third year after the takeover. Should certain financial targets that are in line with the company's current audits, fail to be achieved, Amaya would be obligated to pay a cash consideration to Goldstar.
Aumento to Seek Listing on TSX
Aumento will complete the Goldstar acquisition, which will be seen as the Aumento Qualifying Transaction, after which the company will be seeking a listing on the Toronto Stock Exchange. The Goldstar shares will be replaced by Aumento common shares that will be of equal value to the Issue Price of $856,000.
Goldstar, based in Toronto, was specially set up for the specific purpose of acquiring any outstanding WagerLogic shares that were available. The company was incorporated just last month on September 9th, 2013. The Goldstar purchase of WagerLogic from Amaya will be funded by an $80 million private placement with lead agent Canaccord Genuity Corp. This lead agent will be the sole bookrunner for the transaction.
Amaya Will Continue to Supply Gaming Services to WagerLogic
Amaya offers gaming services and gaming products to companies around the world. The company will continue to provide these products and services to WagerLogic. WagerLogic wholly owns WagerLogic Alderney Limited and CryptoLogic Operations Limited (Malta). WagerLogic software operates over 150 casinos that are operated around the world, offering nine languages, and three currencies.
The Chief Executive Officer of the Amaya Gaming Group Inc., David Baazov, said: "The proposed sale of these business-to-consumer assets is consistent with our strategy of focusing primarily on being a single source business-to-business supplier of diversified gaming solutions to gaming operators."
Mr. Baazov further noted: "We anticipate this divestiture will allow us to expand our existing relationships and cultivate new ones with online gaming operators."
When Amaya purchased CryptoLogic Limited in April 2012, it acquired WagerLogic as an indirect subsidiary.
