NYX, the US-based gaming company with roots in the UK, Sweden and Australia, has just acquired two new assets from Amaya Inc.
The deal, which is worth $120 million, will see NYX assume control of Chartwell, Cryptologic and receive an added incentive from Amaya.
Because Chartwell and Cryptologic only made $17.4 million last year and have a negative EBITDA (earnings before interest, taxes, depreciation, and amortization) of $7.6 million, Amaya has agreed to use NYX’s casino games on its poker portals and pay $12 million per year.
Guaranteed to last three years, the revenue share deal will give NYX a presence on PokerStars and Full Tilt and the company hopes this presence will allow it to earn even more than money.
“We are excited about this acquisition and partnership, which will provide NYX with additional leading gaming content and access to what we believe will be one of the world’s fastest growing online casinos,” said Matt Davey, CEO of NYX.
Despite this optimism, NYX is still a company with mounting debts and it’s unlikely this new deal will revive the company’s ailing fortunes.
Neither Chartwell nor Cryptologic have been particularly successful in the online casino realm for the last few years and this has led some to suggest that the acquisition may be a vehicle for future projects.
Just as Amaya needed a break before it acquired the Rational Group, NYX will be hoping that its new assets can open up further opportunities in the gaming sector.
The company recently announced that all of its B2B poker products will now have casino games incorporated into them.
After purchasing the Ongame Network from Amaya in 2014, NYX is now looking to improve its poker software and give its licensed operators a greater range of gaming options.
While the new deal will mean money in the bank for Amaya, the company is still trying to recover from the recent investigation by the Royal Canadian Mounted Police (RCMP) and the Financial Markets Authority (AMF).
In December 2014, Amaya’s head office was searched by the Canadian authorities following suspicions of irregular financial dealings in the lead up to the company’s takeover of the Oldford Group (the parent company of the Rational Group).
Since that time a thorough investigation has been taking place into whether or not the company acting improperly before its $4.9 billion purchase.
Although the investigation is ongoing, a recent statement by Amaya suggested that it has conducted an internal review and it is happy there is no evidence of wrongdoing.
“The AMF investigation has not resulted in any proceedings and no charges have been filed. The company is confident that at the end of the investigation the AMF will come to the same conclusion as Amaya has – that if there were violations of Canadian securities laws, they were not committed by the company, officers or directors,” read a statement from Amaya.
Legal pressures aside, the latest deal between Amaya and NYX appears to be one that could prompt further developments for both companies and, therefore, poker players in the coming months.