Online gambling company Intertain Group announced this (Thursday) afternoon a deal to acquire various B2C assets of Gibraltar-based online gaming operator Gamesys, including leading website Jackpotjoy.
Intertain will make an initial payment of £425.8 million (€569 million/$651 million) for a newly-incorporated Gamesys subsidiary, which will hold all of the Jackpotjoy business’ brands and player data assets.
Thirteen per cent of the initial payment will be funded through Gamesys being issued with £56.8 million of Intertain’s shareholding.
Further earn-out payments up to a total of £15 million will take place over the next three years, depending on whether Jackpotjoy meets certain financial targets.
As part of the agreement, Gamesys will also enter into a 10-year services agreement with Intertain to allow the latter to run the new subsidiary.
The Intertain and Gamesys boards of directors have already approved the deal, which is expected to close in March of this year following regulatory clearance.
Noel Hayden, the principal shareholder, founder and managing director of Gamesys, will also be joining Intertain’s board as a non-executive director.
“Our stated vision is to focus on the female demographic, in regulated markets,” Intertain chief executive John Fitzgerald said.
“This acquisition is consistent with this vision. We feel privileged to be inheriting this strong community of players.
“We have not only acquired the leading online, bingo-led business, but we are also entering into a long-term relationship with one of the most well respected, technology and gaming operators, Gamesys.”
Hayden added: “Gamesys and Intertain are a perfect match. From our earliest discussions we shared their vision which we know is critical to a successful long-term partnership. This is a great deal for Intertain and Gamesys, our shareholders, our employees and our players.”
Intertain announced late last month that it was in talks over a major deal with an unnamed party, although Gamesys’ name had been strongly linked.
source : www.igamingbusiness.com