British online bingo provider, JPJ Group, has announced the signing of a definitive agreement that is to see it sell its Mandalay operating business to a subsidiary of 888 Holdings for £18 million ($23.5 million) in cash.
Online bingo buys:
The London-headquartered operator used an official Tuesday press release to declare that Mandalay is responsible for ‘various online bingo brands’ such as the domain at CostaBingo.com and already utilizes a platform from the Dragonfish business-to-business division of 888Holdings. It additionally stated that the subordinate recently racked up annual revenues of about £11 million ($14.3 million) alongside an unaudited twelve-month net profit of around £3.7 million ($4.8 million).
As a result of the divestment, JPJ proclaimed that it will be better able to optimize ‘return on its marketing investment’ by focusing all of its United Kingdom brand strategies on its bingo-led Jackpotjoy brand. It moreover acknowledged that the coming sale, which it expects to close by the end of next month following the completion of ‘an employee consultation process,’ is to involve an initial payment of £12 million ($15.6 million) followed by the remaining £6 million ($7.8 million) balance in September.
For its part, Gibraltar-based 888 Holdings used its own Tuesday press release (pdf) to detail that the deal is to also involve it taking control of the online bingo domains at CityBingo.com and SingBingo.com before running these entities on a business-to-consumer basis.
Itai Pazner, Chief Executive Officer for 888 Holdings, declared that the acquisition will enable his firm to take ‘full control of these successful brands from a marketing perspective’ in order to further strengthen and support its overall position within the United Kingdom’s online bingo vertical.
Pazner’s statement read…
“The group continues to deliver its stated strategy of expanding across global regulated markets. This expansion is underpinned by organic growth initiatives supported by exploring value-enhancing mergers and acquisitions. We are pleased to announce the acquisition of this portfolio of brands, which includes the well-established CostaBingo.com.”