Amaya Gaming deal on Cryptologic progresses

It appears that the due diligence phase of Amaya Gaming’s intended acquisition of Cryptologic has been successful; the Montreal-based gaming group announced Thursday that it has struck a deal to buy up the remaining shares it does not already own of the gambling software maker with an offer that values Cryptologic at about US$ 35.8 million.

Amaya revealed that it has offered a bid of US$2.54 per share for Cryptologic after making initial overtures beginning in December.

Both company boards have approved the offer, which is a premium of about 56 percent to the closing price on the Toronto Stock Exchange a day before Amaya announced it was considering a bid.

Amaya, which also makes software for the online legal gaming industry, and acquired Chartwell Technology last year, currently holds about seven percent of Cryptologic’s publicly traded stock.

“We believe we share many of the same fundamental values and business philosophies as Cryptologic and we are excited about the opportunity to work in partnership with its management and employees,” Amaya president and CEO David Baazov said in a statement.
“We look forward to completing the acquisition of Cryptologic as another important step in our international expansion strategy to deliver leading edge gaming solutions to our expanding global client base of regulated gaming operators and governments.”

Cryptologic shares rose 7 percent to $2.48 on the announcement.