TORONTO, July 10, 2018 /PRNewswire/ - The Stars Group
Inc. (Nasdaq: TSG) (TSX: TSGI) announced today that it has
completed its previously announced acquisition of Sky Betting &
Gaming ("SBG").
"This acquisition represents a pivotal moment in The Stars
Group's evolution," stated Rafi Ashkenazi, The Stars Group's Chief
Executive Officer. "SBG's mobile-focused sportsbook pairs well with
our industry-leading poker offering to create two premier customer
acquisition channels. We believe this combination along with our
combined online casino offerings positions The Stars Group for
continued growth in the evolving online gaming industry."
This acquisition also provides The Stars Group with multiple
expected operational and financial benefits, including:
- Dramatically improves The Stars Group's revenue diversity,
creating a balanced spread across poker, casino and sportsbook with
a broad geographic reach.
- Increases The Stars Group's presence in locally regulated or
taxed markets to approximately 75% of combined revenues.
- Develops sports betting as a second customer acquisition
channel, complementing The Stars Group's core offerings and
creating an opportunity to cross-sell players across multiple
verticals.
- Enhances The Stars Group's products and technology through the
addition of SBG's innovative sportsbook and casino offerings and
portfolio of popular mobile apps.
"This transaction creates the world's largest publicly listed
online gaming company and unites two iconic brand portfolios with
strong technology platforms and teams. This significant scale also
positions The Stars Group to both secure and expand upon its global
footprint," concluded Mr. Ashkenazi.
Consideration for the purchase of SBG was comprised of a
combination of cash and approximately 37.9 million newly-issued
common shares of The Stars Group. The cash consideration of the
acquisition was financed through cash on the balance sheet,
proceeds from The Stars Group's recent equity offering and newly
issued debt consisting of:
- $100 million from its revolving
credit facility, which was increased to $700
million, priced at LIBOR plus 3.25% and maturing in five
years;
- $4,567 million equivalent in new
first lien term loans, comprising a U.S. dollar denominated tranche
of $3,575 million priced at LIBOR
plus 3.50% and a Euro denominated tranche of €850 million priced at
Euribor plus 3.75%, and each with a 0% floor and maturing in seven
years; and
- $1,000 million in 7.0% unsecured
senior notes due July 2026.
About The Stars Group
The Stars Group is a leading
provider of technology-based product offerings in the global gaming
and interactive entertainment industries. The Stars Group directly
or indirectly, including through Sky Betting & Gaming and its
Stars Interactive Group division, owns or licenses gaming and
related consumer businesses and brands, such as PokerStars,
PokerStars Casino, BetStars, Full Tilt, Sky Bet, Sky Vegas, Sky
Casino, Sky Bingo, Sky Poker, and the PokerStars Players No
Limit Hold'em Championship, European Poker Tour, PokerStars
Caribbean Adventure, Latin American Poker Tour, Asia Pacific Poker
Tour, PokerStars Festival and PokerStars MEGASTACK live poker tour
and event brands. These brands together have millions of registered
customers globally and collectively form the largest poker business
in the world, comprising online poker games and tournaments,
sponsored live poker competitions, marketing arrangements for
branded poker rooms in popular casinos in major cities around the
world, and poker programming and content created for television and
online audiences. The Stars Group, through certain of these and
other brands, also offers non-poker gaming products, including
casino and sportsbook. The Stars Group, through certain of its
subsidiaries, is licensed or approved to offer, or offers under
third party licenses or approvals, its product offerings in various
jurisdictions throughout the world, including in Europe, both within and outside of the
European Union, Australia, the
Americas and elsewhere. In particular, The Stars Group, through its
subsidiaries, currently holds gaming licenses or approvals in 19
jurisdictions, with PokerStars being the world's most licensed
online gaming brand, holding 17 of such licenses or approvals.
Cautionary Note Regarding Forward Looking Statements and
Other Information
This news release may contain
forward-looking statements and information within the meaning of
applicable securities laws, including, without limitation, the
acquisition of Sky Betting & Gaming, the financing of such
acquisition and certain plans and expectations with respect to the
foregoing. Forward-looking statements can, but may not always, be
identified by the use of words such as "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "intend", "could",
"might", "would", "should", "believe", and similar references to
future periods or the negatives of these words and expressions.
These statements are based on management's current expectations and
are subject to a number of risks, uncertainties, and assumptions,
including litigation risk, market and economic conditions, business
prospects or opportunities, future plans and strategies,
projections, anticipated events and trends and regulatory changes
that affect The Stars Group, its subsidiaries, and its and their
respective customers and industries. There can be no assurance that
actual results will not differ materially from those expressed or
implied in forward-looking statements. Undue reliance should not be
placed on forward-looking statements. Please refer to The Stars
Group's most recent annual information form and annual and interim
financial statements and management's discussion and analysis for
more information about the factors, assumptions and risks that may
apply to The Stars Group's forward-looking statements. Each
forward-looking statement speaks only as of the date hereof, and
The Stars Group undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
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SOURCE The Stars Group Inc.