Pioneer of online bingo gaming
Founded in 2001, British firm CashCade is the largest provider of online bingo entertainment to UK-based players with leading brands such as FoxyBingo.com, MirrorBingo.com, ThinkBingo.com and CheekyBingo.com.
PartyGaming, the listed Gibraltar-based online gaming portal operator, has acquired Cashcade from Independent News & Media, the listed Irish based newspaper and communications group, and other private individuals, on a debt free cash free basis, for a cash consideration of GBP 95.9m.
Prior to the transaction, Independent News & Media held an 18% stake in Cashcade. The transaction includes an initial payment of £71.9m, and an additional payment of £24m related to future profit performance. The £24m comprises of £15m to be paid to Cashcade shareholders in March 2010 if Cashcade’s EBITDA for the 2009 equals £15m, and £9m in March 2011 if Cashcade’s EBITDA for the 2010 equals £19m.
The deal sees PartyGaming’s share of the global online bingo sector increase to around 6% while it will possess a 23% stake of the UK market, which is estimated to be worth over £245m.