Amaya Looking to Buy Cryptologic

By Debra SaundersGoogle

The Amaya Gaming Group, a gaming software development and consulting company, has officially submitted an initial offering for the purchase of the capital of online casino software company Cryptologic.  Amaya’s provisional offer constitutes a showing of intent and does not represent a final and completed deal; the deal’s completion, if agreed upon, could take quite some time.  Last April Amaya acquired 5.05% of Cryptologic’s shares.  At the time of the acquisition, David Baazov, the CEO of the Amaya group, stated that the purchase was aimed at providing the possibility for strategic transaction with Cryptologic.  That led many online casino reviews to expect Amaya’s current offering. 

Reports from within Cryptologic say that the company’s board of directors principally agreed to Amaya’s initial terms – an offering price of $2.50 cash per share, a price 52% higher than the NASDAQ closing price as of December 14.  That means that the next phase of the deal will be Amaya’s confirmatory due diligence, or in English, double-checking that it makes sense to buy the company at the offered price.

The completion of the takeover is therefore dependent on three final phases.  Phase one is the completion of Amaya’s confirmatory due diligence which constitutes Amaya’s confirmation of intent.  The second phase is the decision of the board of directors of Cryptologic which must be unanimous; this constitutes Cryptologic’s confirmation of intent.  The third phrase, the purchase phase, is dependent on where or not Amaya can actually come up with the capitol.  If Amaya fails to come up with the money, the deal will get buried.  Amaya has about three weeks to finalize their intent of purchase.  The finalization of this purchase will position Amaya at the forefront of the online casino games industry.  

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