To supplement its successful poker business, spearheaded by the popular Party Poker room, PartyGaming has just acquired the entire issued share stock of Cashcade Limited, a successful online bingo and casino operator.
Cashcade was purchased for £71.9m in cash, with a further £24.0m in cash pending on future performance. Last year Cashcade generated revenue for £44.9m, a leap from the £28.5m it generated in 2007. It is expected that Cashcade’s experience and positioning will boost PartyGaming’s current bingo activities. According to the press release, Cashcade owns some of the UK’s leading online bingo websites including Foxy Bingo, Think Bingo and Bingo Scotland as well as casino sites such as GetMinted and Foxy Flutter.
Jim Ryan, PartyGaming’s Chief Executive Officer, commented on the decision to purchase Cashcade:
“Cashcade provides us with an excellent platform to build a meaningful share of the $1.5 billion global online bingo market. Our M&A objective is to acquire companies that can put us into a top three position in each of our four product verticals and deliver substantial revenue and cost synergies. Our longer-term strategic objective is to become the market-leader in online poker, casino, sports and bingo.”
Patrick Southon, Cashcade’s Managing Director, is also very enthusiastic about joining industry behemoth PartyGaming, declaring:
“This is a very exciting day for Cashcade and we are delighted to join the PartyGaming organisation. We believe there is a substantial opportunity to leverage our existing business now that we are part of the world’s leading online gaming company.”
