Reuters reported yesterday that PartyGaming, the online gaming giant behind online bingo site Party Bingo, as well as their other brands Party Poker and Party Casino are close to announcing a £100m pound deal to buy CashCade, also a big online gaming company behind the popular online bingo brands Foxy Bingo and Cheeky Bingo.
One of the current owners of CashCade, Independent News and Media have been looking to sell CashCade for a while now in order to reduce the company’s debt. Independent News and Media own 20% of CashCade. It was presumed for a long time that 888 Holdings would buy CashCade as we previously reported here at Groovy Bingo. However late in the negotiations PartyGaming entered into a bidding war with CashCade and put a bid of £100m on the table that proved too much for 888 Holdings to bid over.
Interestingly enough, 888 holdings supply CashCade the software that powers Foxy Bingo and according to a binding contract CashCade must use 888 Holding’s software for the next two years.
Under this new deal to buy CashCade, Party Gaming would pay £75m at first and the remaining £25m over the next two years. However Reuters also reported that the payout of the remaining £25m is tied to the performance of CashCade during this time.
CashCade have been around from the beginning of the online bingo emergence in the UK and have grown significantly over the years with the help of heavy TV and online advertising and from the sponsorship of Katie Price aka Jordan as the face of the Foxy Bingo in the early days. CashCade later confirmed its market dominance when it bought HeroTech the big competitor behind both Think Bingo and Bingo Scotland.
Neither Party Gaming nor CashCade have yet to comment or send out any press release announcing the buyout.
Play Cheeky Bingo
Subscribe to this comment's feed
