Intertain Group acquires UK online bingo giant Mandalay Media
The Canada based online gaming business the Intertain Group Limited has purchased Mandalay Media, the UK online bingo company.
It was announced last week that the Intertain Group negotiated an acquisition worth £45 million in cash with a further £15 million to be paid dependent on how well the business performs in the future.
The CEO of Intertain John Kennedy FitzGerald said:
“This bingo acquisition will add a missing gaming vertical, a bingo-focused marketing team, diversify our current casino offering and is expected to be materially accretive to earnings per share and free cash flow. The timing of this acquisition is also advantageous as we are acquiring the business at the end of Mandalay’s robust marketing campaign undertaken and paid for by the vendors, the benefits from which we believe have yet to be reflected in revenue and earnings”.
Exciting times for online bingo
Mandalay Media boasts an impressive array of UK bingo websites including Costa Bingo, Fancy Bingo, Sing Bingo and City Bingo, as well as affiliate sites Casino Choice and Ignite.
Since the company’s launch in 2009 over 1 million players have signed up for the bingo sites owned by Mandalay and across the network over 9000 bingo enthusiasts play daily.
Stan Dunford, the Chairman of Intertain also commented that:
“The acquisition of Mandalay in the Board’s view meets the acquisition criteria that management has defined. Mandalay’s bingo product and team are important additions to enhance our business. We are looking forward to leveraging the addition of bingo to our current offerings in order to enhance our customers’ experience while increasing shareholder value”.
In 2013 the online bingo market was estimated to be worth around £750 million with further growth predicted throughout the next four years.