Amaya completes CA$476m Cadillac Jack sale
Toronto-based gaming giant confirms sale of land-based slots business to Apollo Global Management
Amaya Gaming has completed the CA$476m sale of its land-based slots business Cadillac Jack, the Toronto-based gaming giant confirmed this morning. [private]
The sale to Apollo Global Management was first announced back in March after Amaya announced it would divest its entire B2B business in order to focus on its PokerStars and Full Tilt offering.
Apollo paid consideration of $461m and a $15m payment in kind note for Amaya Americas, the holding company for Cadillac Jack, with Amaya more than doubling the $211m it paid for the firm back in 2012.
Amaya CEO David Baazov said the sale of Cadillac Jack was âconsistentâ with the operatorâs strategy to focus on its B2C business.
âCadillac Jack has expanded its business greatly under Amaya’s ownership to the credit of its management and its employees,â Baazov said.
âWe are extremely pleased that we have been able to crystallize on the value that has been created within Cadillac Jack over the past two-and-a-half years for the benefit of our shareholders,â he added.
As part of its transformation to a B2C focused operator, Amaya recently sold its Ongame poker network and Chartwell and Cryptologic online casino platforms to NYX Gaming.
Amaya also used the announcement to provide an update on the ongoing investigation into its $4.9bn acquisition of the Rational Group by the Autorité des marchés financiers (AMF) in Quebec stating the AMF had not announced any proceedings or filed any charges to date.
The operator said the investigation involves employees including Baazov and CFO Daniel Sebag, but doesnât involve any personal trading by such individuals and it was confident no charges would be filed.
âI believe that any concerns that I or other Amaya officers or directors violated any Canadian securities laws are unfounded and we are confident that at the end of its investigation, the AMF will come to the same conclusion,” Amaya’s Chairman and CEOÂ David Baazov, said.