Canadian Online Gambling Company NYX Buys OpenBet

NYX is a Canadian online gambling technology company listed on the Toronto stock exchange. It has just confirmed the acquisition of a competitor and this will increase the standing of NYX in the online gambling market.

The rival betting technology company that NYX has acquired is OpenBet. The price paid for the deal is £270 million, which works out to almost 500 million Canadian dollars. NYX has agreed to pay the full amount in cash to OpenBet's owners, the hedge funders Vitruvian Partners LLP. NYX has two smaller partners in this takeover. An £80 million (CA$147.15 million) contribution is coming from the United Kingdom betting operator William Hill and a further £20 million (CA$36.79 million) from Sky Betting. With this, William Hill will have a 19% stake in OpenBet and Sky Betting will have a 5% control. Both these companies are already existing OpenBet clients.

William Hill will also take an additional £10 million (CA$18.39) stake in NYX and work closely on several fronts. A 10 year deal has been formalized in which at first NYX will help to develop William Hill's sports betting, gaming, and retail platforms. Then, within the next three years NYX will launch of a brand new platform for William Hill.

NYX CEO Matt Davey explained the reasons for this transaction. He said that the new deal will allow NYX companies to offer a complete online gambling package to current and future clients. He added that the natural union of NYX and OpenBet would allow them to exploit synergies in the product, the customer base, and the culture. For example NYX already provides casino games to the world's leading operators with content from their in-house studios and NYX companies such as NextGen Gaming, Side City, Icecap Studios, Cryptologic, and Ongame. They also have contracts with partners all over the world through their OGS which include Sheriff Gaming, Amaya, iGaming2go and Microgaming Quickfire. In short NYX supplies over 600 games to 170 operators worldwide.

Some of the United Kingdom online betting operators are reported not be too happy with the deal. They are clients of OpenBet and are not comfortable with the sports betting technology supplier being at least partially under the control of their rival William Hill. However, some of the OpenBet clients have publically supported the acquisition. One such operator is Paddy Power Betfair. Paddy Power Betfair spokesman James Midmer said that his firm was "confident that the combined group will continue to deliver a great product and service."

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