Amaya to acquire PokerStars and Full Tilt Poker for $4.9bn
The deal sees Canadian gaming supplier become world's biggest publicly-listed gaming company and paves way for possible US return for PokerStars
Amaya Gaming Group has confirmed it is set to acquire the Rational Group in a deal worth $4.9bn which will see the Canadian gaming supplier become the world’s largest publicly-listed online gaming company.
The agreement includes the purchase of both the PokerStars and Full Tilt Poker brands, paving the way for a possible return to the US market for PokerStars.
Amaya will acquire 100% of the shares of Oldford Group, the holding company of the Rational Group, with shareholders led by founder and CEO Mark Scheinberg disposing of their shares to a subsidiary of Amaya.
“This is a transformative acquisition for Amaya, strengthening our core B2B operations with a consumer online powerhouse that creates a scalable global platform,” David Baazov, CEO of Amaya, said.
“Mark Scheinberg pioneered the online poker industry, building a remarkable business and earning the trust of millions of poker players by delivering the industry’s best game experiences, customer service and online security,” he added.
Last night eGaming Review reported a deal was imminent after receiving confirmation from sources, and the suspension of Amaya shares which rose 17% in early trading, bringing to a close weeks of speculation.
Under the terms of the agreement Amaya will acquire Rational Group’s B2C poker business including PokerStars, Full Tilt Poker, live poker tours, and online and TV programming.
The deal will be financed through new credit facilities and equity financing, with a $2bn first lien loan and $100m revolving credit facility underwritten by Deutsche Bank, Barclays and Macquarie Capital.
An $800m second line term loan has also been underwritten by the same three financial institutions with further participation from Blackstone’s credit business GSO.
A further $1bn has been raised through the issue of convertible preferred shares on a private-placement basis, valued at an initial price of C$24 per share, while C$500m is to be raised through the issue of subscription receipts.
The remaining balance, approximately $500m, is to be paid through Amaya’s existing cash reserves.
“I am incredibly proud of the business Isai and I have built over the last 14 years, creating the world’s biggest poker company and a leader in the egaming space,” Rational Group founder and CEO, Mark Scheinberg, said.
“The values and integrity which have shaped this company are deeply ingrained in its DNA.
“David Baazov has a strong vision for the future of the Rational Group which will lead the company to new heights,” he added.