Sky Betting & Gaming (SkyBet) has reached an agreement to support Scientific Games’ proposed acquisition of NYX Gaming Group.
In September, Scientific Games struck a deal to acquire the entire NYX business for a fee of approximately C$775m (€512.3m/US$603.9m).
SkyBet owns 1,648,000 ordinary shares of NYX, 412,000 warrants, and 37,400 convertible preference shares of a subsidiary of NYX, and has now declared its backing for the merger.
Richard Flint, chief executive of SkyBet, said: “We believe that the acquisition of NYX by Scientific Games delivers great value for us as a shareholder in NYX, and we look forward to continuing to work with a combined Scientific Games and NYX as more jurisdictions around the world look to legalise sports betting and online gaming.”
The move comes after William Hill last week also announced its support for the deal, despite having previously suggesting it could oppose the acquisition.
Last month, William Hill last month spoke out over concerns it had regarding contractual rights it obtained when it enabled NYX to purchase OpenBet.
This led NYX to file an anti-trust lawsuit against the bookmaker in the Chancery Division of the Superior Court of New Jersey.
However, William Hill has changed its position after reaching an agreement with Scientific Games to “unconditionally support” the acquisition, with both parties withdrawing from all litigation in the US and UK.
William Hill owns and controls 6,800,000 ordinary shares of NYX and £80m of preference shares of NYX Digital Gaming, an indirect wholly owned subsidiary of NYX.
Meanwhile, Scientific Games and NYX have also announced that Institutional Shareholder Services Inc. and Glass Lewis & Co., two leading independent proxy advisory firms, have recommended that NYX shareholders vote in favour of the deal at meetings later this month.
Shareholders meetings to approve the acquisition are scheduled for December 20 in Las Vegas, Nevada, and Scientific Games and NYX have encouraged all shareholders of NYX to vote in favour of the acquisition.
