AMAYA GAMING is poised to make a formal bid for Cryptologic that values the Irish-based gambling software specialist at over €27 million, €2 million more than the preliminary offer it put to the board in December.
Seven weeks ago, Canadian-based Amaya, which already owns 7 per cent of Cryptologic, said it had agreed a preliminary cash offer of $2.50 a share with the board, which valued the Irish company at €25 million.
Yesterday, Amaya and Cryptologic said they have agreed a cash offer of $2.535 for the company’s shares. This offer values Cryptologic at $35.8 million or €27 million.
The offer is a 55 per cent premium on the $1.64 price at which the shares traded on December 14th, the day before Amaya made its preliminary offer.
Amaya will have to spend just over €25 million to buy out Cryptologic’s other shareholders.
There was no indication what impact a deal would have on the staff working in the company’s Dublin offices.
In a statement yesterday, the board said the offer was fair and reasonable and that it intends to recommend that shareholders accept it.
Amaya also pointed out that certain Cryptologic shareholders, whose stake in the company comes to 14.14 per cent, have irrevocably agreed to accept its offer.
Amaya has 28 days from yesterday to make a formal offer to Cryptologic shareholders. If a deal is done, it could take up to five weeks after the formal bid is made.
There is no indication at this stage if the new owner will maintain Cryptologic’s Irish headquarters.
Cryptologic develops superhero and movie-themed slot machine-style and casino games and licenses them to other operators such as Paddy Power, Ladbrokes and Betfair. It employs 24 people in Dublin, mainly in corporate HQ roles. It has staff in centres in Canada and Malta involved in software development.
