Stars Group mulls fundraising for new acquisitions

The Stars Group has big expansion plans, CEO Rafi Ashkenazi revealed to the Reuters news agency in an interview on Monday in which he said that the company could raise up to $2.5 billion to fund acquisitions if needed.

He said that the company – formerly titled Amaya Inc – has about $255 million of cash and reduced its debt by $515 million in the last year, giving it enough leverage to ramp up its expansion plans through the acquisition of either one big company, or three to five small-to-medium companies, probably in the online casino and sportsbook sector.

Talks are already underway, he revealed, although he did not give details.

Ashkenazi said that over the next five years online poker would continue to be the biggest contributor to group revenues.

In its third quarter results last week (see previous InfoPowa report) Stars Group posted a third-quarter profit that increased six fold, thanks to strong performances across its three main verticals.

Noting the recent approval of online gambling legislation in Pennsylvania, Ashkenazi said that his company has plans to secure a licence with a Pennsylvanian land gambling partner in the near future.

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