PARTY GAMING CONFIRMS CASHCADE ACQUISITION (Update)
24 July 2009
Acquisition will be funded from existing cash
resources, says online gambling group
Reports in The Times newspaper over the weekend that
Party Gaming plc has acquired Cashcade plc have been
confirmed by the online gambling group.
In a
statement Thursday, Party confirmed that the
consideration agreed is an initial payment of GBP 71.9
million in cash with up to a further GBP 24 million in
cash contingent on future profit performance.
Cashcade has been acquired on a debt-free/cash-free
basis, and Party expects the acquisition to be earnings
enhancing, pre-amortisation of intangibles, in 2009.
In the year ended 31 December 2008, Cashcade
generated net revenue of GBP 44.9 million (2007: GBP
28.5 million) and EBITDA of GBP 12.2 million (2007: GBP
4.9 million), implying an acquisition multiple of 5.9
times 2008 EBITDA.
The acquisition is being
financed from existing cash resources.
Cashcade’s skills and experience will boost
PartyGaming’s existing bingo activities, the
announcement notes.
Commenting on the deal, Jim
Ryan, PartyGaming Chief Executive Officer, said: “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, said: “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.”
Online Casino News Courtesy of
Infopowa
More news here.
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