Party Gaming Buys Gaming Operator Cashcade
Party Gaming who is the owner of Party Bingo has officially purchased Cashcade and increased its share in the online bingo market. It beat fierce competition from its most close online competitors like Paddy Power and 888.com to obtain its latest acquisition.
Party Gaming will pay a sum close to £72 million for the London based Cashcade and are likely to pay a further £24 million subject to future profit performance. Cashcade was founded in 1999 and is currently comprised of a number of bingo websites, including Foxy Bingo, Think Bingo, Little Big Bingo, and Bingo Scotland.
At the end of 2008 Cashcade reported an annual net revenue of £44.9 million. To date Cashcade boasts 2.2 million registered players worldwide and over 460,000 active players. Impressive figures for an impressive online bingo operator.
Partick Southon who is Cashcade’s Managing Director commented that they are delighted at the prospect of becoming part of the Party Gaming family. He also commented that being part of such an important and market leading online gaming company is a good opportunity to leverage Cashcade's existing business.
This is the first deal Party Gaming has done since settling with US authorities. Party Gaming Chief Executive, Jim Ryan, believes the Cashcade purchase will enable the company to achieve a substantial share of the global online bingo market which is currently valued at $1.5 billion.
This figure is likely to increase to $2.5 billion by 2012. Party Gaming’s Cashcade take-over will see their share of the online bingo market jump from its 6% position to a huge 23% of the UK market, estimated to be worth around $410 million.
Cashcade is currently the UK market leader and it is hoped that they will continue to build on this position with the new takeover. Party Gaming and Cashcade believe that it is a great opportunity to branch out into international markets.
