NYX Acquires OpenBet

NYX Gaming Group is an industry leader in providing products and flexible gaming solutions to lotteries, casinos and gaming operators around the world. Their technology division, NYX Interactive supplies platforms for world lottery Association members, and gaming companies worldwide. There Social division provides social poker and casino solutions for online and land-based companies. NYX recently finalized an agreement with OpenBet to purchase the company for $270 million. OpenBet is currently owned by the hedge fund company Vitruvian Partners. The combination will provide customers with premium betting and gambling solutions using all channels.

The deal was made with the help of William Hill and Sky Betting. The UK bookmaker, William Hill, contributed 80 million pounds, later adding an additional 10 million pounds. Sky Betting & Gaming contributed 20 million pounds to the deal. This puts Hill’s stake in the company at 19%. Sky Betting & Gaming is at 5%. Both of these companies are clients of OpenBet, so they won’t be given seats on the Board of Directors, allowing OpenBet independence. When the deal is completed OpenBet will be able to expand the games they offer. Currently they only offer poker and casino products. They expect to generate revenues from the, combined companies of between eight and $10 million. At the same time NYX announced that it will be selling the European portion of their Ongame poker business. They will retain the rights to use the brand in North America.

Key benefits of the combination of NYX and OpenBet, include that the Sportsbook platform completes the product lineup and allows NYX to expand into the U.K. and other regulated global markets. It will allow NYX access to blue-chip clients allowing them to strengthen their network base. OpenBet proven track record of revenue will be a major plus for NYX. For the year ending June 2015 revenues from the operation were 64.5 million pounds. NYX will recognize significant revenue and cost synergies with the combined businesses.

William Hill and Sky Betting will be participating in the purchase or a preferred equity investment of a total of 100 million pounds. William Hill has enlisted in a new development program with NYX to modernize OpenBet technology platform. The project is expected to be completed in three years and should generate an additional 10 million pounds in revenue. After the completion of this transaction NYX will become the leading provider of business-to-business betting and gaming solutions in the world. Matt Davey, CEO of NYX is looking forward to working with OpenBet, to deliver world class experiences to their players. The combination of the two companies will provide synergies in product, customer base and culture. The acquisition of OpenBet will bring a fresh perspective to NYX.