NYX Gaming Group has revealed its recent acquisition of Chartwell Technology and CryptoLogic Limited from Amaya could help the company to reduce its costs.
As reported by iGaming Business, NYX on Monday announced that it had completed the purchase of the entire issued share capital of Amaya Inc., a B2B business comprising the Chartwell and CryptoLogic subsidiaries.
The deal has been confirmed as being worth $110 million (€101.2 million) in cash, subject to a customary working capital adjustment, as well as the issuance of $40 million exchangeable share of a subsidiary of NYX to Amaya.
Having completed the transaction, NYX has now revealed in a market update that the deal could help the company realise “a significant number of opportunities” to reduce costs.
“As part of the acquisition, we inherited offices in Calgary, Toronto, Dublin, Malta, and Gibraltar,” NYX said in the market update.
“We anticipate consolidating offices in Malta and Gibraltar, reducing office space in Toronto, and closing the office in Dublin.
“We have already commenced an overall reduction in general and administration expenses in the areas of personnel, software and hardware, consulting fees, occupancy cost, internet and bandwidth, legal, accounting, and other professional services.
“We have previously disclosed that overall cost synergies are estimated to be $7 million (€6.4 million) to $9 million over the next 12 months and we continue to be on track to achieve this savings.
“We anticipate savings of $2.5 million on an annualised basis during 2015, with the remaining synergies to be achieved in 2016.”
NYX also used the trading update to detail the ongoing restructuring of Ongame, with the company expecting to achieve cash flow breakeven by the end of 2015 or early next year.
With costs having been cut by $12 million over the past seven months, NYX is now working to migrate customers using the Amaya Gaming Office to the NYX Open Platform System, which could generate annual savings of up to $3.6 million per year.
NYX also stated that it expects to reports its financial results for the three-month period through to June 30, 2015, on August 27.