New York-listed Scientific Games Corporation has moved to strengthen its iGaming product range by agreeing a CAD$775m deal to acquire NYX Gaming Group.

Scientific Games said that the acquisition positioned the company to capitalise on future regulatory developments in real-money sports betting by adding NYX’s OpenBet sportsbook to its portfolio.

Under the terms of the definitive agreement, Scientific Games will acquire all of the outstanding ordinary shares of NYX for CAD$2.40 per share, equivalent to an enterprise value of $775m (approximately US$631m).

The deal will be financed with cash on hand and debt, and represents a 112 per cent premium to NYX's closing stock price of $1.13 on Tuesday.

"This important transaction creates a global gaming and lottery powerhouse," said Scientific Games president and chief executive Kevin Sheehan. "Scientific Games will be a stronger industry leader offering one of the broadest end-to-end portfolios of engaging content, innovative technologies and digital products and services across gaming and lottery."

Sheehan described it as a "strategic and financially compelling" acquisition which combines NYX's digital gaming and sports betting platforms and distribution network to its own content, technologies and digital products and services.

"NYX ideally positions us to capitalize on the growing online gaming and sports betting markets," he said.

NYX CEO Matt Davey said that the acquisition would provide immediate and compelling cash value for shareholders, expand the products and solutions it is collectively able to offer customers, and "accelerate the execution of our long-term strategic plan".

"We will now have scale, content and product development capabilities, complementary global infrastructure and access to an expanded customer base,” he continued. “We believe Scientific Games is the ideal partner for NYX, and we look forward to working alongside the talented Scientific Games team."

Following completion, Davey will oversee a newly created Digital Gaming and Sports division at Scientific Games, reporting to Sheehan. He will work with the existing leadership of NYX and SG Interactive, including Leigh Nissim, the recently appointed managing director of B2B Interactive for Scientific Games.

Shares in NYX Gaming Group Ltd (Co. Data) (CVE:NYX) were temporarily suspended earlier Wednesday in Toronto pending the announcement before resuming to trade at CAD1.13 per share in Toronto, while shares in Scientific Games Corporation (Co. Data) (NYSE:SGMS) were trading at US$43.10 in New York.

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