Amaya Settles Debts With Rational Group
Online gambling software developer Amaya has now made its last payment on the purchase of its acquisition of the Rational Group. This comes as the final settlement of the previously postponed purchase price, which Amaya has been obligated to pay to finalise the deal. The Canadian gaming provider announced in June of 2014 that it would be purchasing Rational Group, the operator of popular online poker brands Full Tilt Poker and PokerStars. The agreed price for the deal was $4.9 billion, and the proposed acquisition was quick to receive approval from its respective regulators after the announcement.
Baazov Resignation Put Amaya’s Acquisitions On Hold
Former Amaya CEO David Baazov was pleased to have made the acquisition, noting that PokerStars and Full Tilt will no doubt prove to be lucrative additions to his company’s portfolio of brands, and that the companies’ staff forces were to remain largely unchanged. Unfortunately, Amaya’s purchase of Rational Group was delayed by several unforeseen events which impacted on the company’s operational costs and revenues, including a scandal with then-CEO Baazov being trialled by Quebec courts for alleged insider trading. Baazov resigned soon afterwards, leaving Amaya in a grey zone and putting a hold on many of its operations and purchase deals. Now, as the last part of the agreement made almost three years ago, Amaya has paid the outstanding balance of $47.5 million for the acquisition, along with over $870,000 in fees related to the postponement of the payment in question.
Cash Flow From iGaming Brands Funded Final Payment
Amaya has revealed that it used mainly cash flow from its gaming brands, including the two poker brands previously operated under Rational Group, to fund its last payment. The final payment has been made after Amaya shelled out a fraction of the deferred purchase price – just $200 million – in November last year. The developer also made a payment of $75 million earlier this year in February, and another payment of the same value only a few months later in April. After this final payment, the Canadian company has become the official owner of the Rational Group and all of its subsidiary iGaming brands.