he partnership will start with the planetwin365 branded site which is expected to launch on NYX Poker in Q4 2015, significantly enhancing that network’s player liquidity.
In addition, the Company has acquired eGaming Consulting, which previously supplied planetwin365 with their gaming operations. The current eGaming Consulting team of 14 people located in Belgrade will augment NYX’s existing poker operations and lead to an overall reduction in costs for the Company as the Ongame and eGaming Consulting teams are integrated.
The total investment, which includes a mobile platform is €7,500,000 cash, of which includes €3,375,000 will be paid on closing and the remaining paid over the following six months as certain milestones are met. The purchase price paid is based on a range of 5.5x to 7.5x 2015 estimated EBITDA and financed with cash on hand (which includes the expected revenue from the long term global agreement with planetwin365). The transaction remains subject to customary gaming regulatory approvals.
“We are proud to have reached agreement with planetwin365, which operate an online sports book and gaming business that has shown impressive growth within the highly competitive gaming industry. This B2B deal and related acquisitions are important steps to meeting our commitment to shareholders to restructure Ongame and achieve cash flow breakeven for that division by the end of 2015 or early Q1 2016.” said Matt Davey, Chief Executive Officer of NYX.
"NYX will be an important business partner of planetwin365 and we are delighted they have chosen us as a partner for growth in line with our commitment to nationally regulated environments. A partner such as NYX puts us in a good position to succeed in those markets.” said Thomas Smallwood, Chief Executive Officer of SKS365 Group GmbH, owner of the planetwin365 brand.