PartyPoker Parent Hits Acquisition Trail

PartyGaming, the publicly-quoted parent company of PartyPoker.com, today announced it had entered the acquisition market with the purchase of Cashcade, home to some of Europe’s biggest bingo and casino brands including Foxybingo and Getminted.

The initial consideration is £71.9 million in cash with up to £24 million payable over the next two years depending on the profit performance of the companies.

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.”

Analysts Daniel Stewart & Co. has upgraded its target price for PartyGaming from 339p to 366p on the back of the acquisition saying, “We continue to expect further industry consolidation and robust trading from PartyGaming, with considerable potential positive catalysts from European and U.S. regulatory issues.”

PartyGaming’s share price at 8:40 a.m. was 245.25p, up from 238p when the markets opened this morning.

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