The Amaya Gaming Group has emerged as the biggest publicly held online gambling company in the world thanks to its acquisition of PokerStars for $4.9 billion.
It came as no surprise that the stocks of the Montreal-based company almost doubled in value, trading at C$20 at the close of market in Toronto.The acquisition will mean a rapid rise for Amaya as it would emerge as a $4 billion online gaming business. Amaya’s plans include the reintroduction of PokerStars in to the US market, a move the Amaya’s Chariman and CEO David Baazov described as “very significant”.
In its bid for PokerStars Amaya’s financing was supported by banks such as Barclays, Deutsche Bank and the Macquarie Group, totaling $2.9 billion in bank loans and close to $1.6 billion in equity and convertible securities. In addition, around $400 million of the purchase price is expected to be deferred.
Since Baazov’s joined the company Amaya has experienced a remarkable period of growth with acquisitions under its belt such as slot machine maker Cadillac Jack and gambling software company Cryptologic. Last year’s revenue amounted to $142.6 million and Baazov expects Amaya’s upward trend to continue in a similar vein.