December 15, 2011 / 10:34 PM / 6 years ago

Amaya Gaming plans to buy CryptoLogic for $34.5 million

(Reuters) - Canadian gaming software maker Amaya Gaming Group AYA.V is looking to buyout its peer CryptoLogic CRY.TO CRYP.O for $34.5 million in cash, to expand its customer base.

CryptoLogic’s U.S.-listed shares were up 41 percent in post-market trading.

In March, CryptoLogic had said it has started a strategic review of its business, including a possible sale of the company.

Amaya, which holds about 7.5 percent in CryptoLogic, may offer $2.50 per common share in cash subject to certain pre-conditions, such as proving it has sufficient funds to complete the offer.

Amaya is also required to announce its firm intention to acquire CryptoLogic by January 12 next year.

The offer is 58 percent higher than CryptoLogic’s Nasdaq-listed shares Wednesday closing price of $1.58.

CryptoLogic is a developer of branded online betting games and internet casino software.

Last year, the Dublin, Ireland-based company had also cuts jobs by 47 percent to 111 as part of a restructuring plan to reduce its cost base.

CryptoLogic shares, which have gained about 18 percent this year, closed at C$1.65 on Thursday on the Toronto Stock Exchange.

Reporting by Arnav Das Sharma in Bangalore; Editing by Viraj Nair

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