PartyGaming Buys Cashcade for GBP 100m

Now that its U.S. Justice Department woes are a distant memory, leading online gambling operator PartyGaming seems to be making strategic acquisitions left, right and centre, the most recent being its reported £100 million ($163.1 million) purchase of top-rated online bingo business, Cashcade.

The deal will see PartyGaming increase it already impressive portfolio of online gambling properties by bringing Cashcade's popular online bingo site, Foxy Bingo, and online casino, Getminted, into the fold. The size of this recent acquisition has proven that online bingo is a growing concern and here to stay.

When Cashcade announced it was up-for-grabs, the online gambling industry was rife with speculation as to who would pay the millions required to close the deal. Another leading online gambling firm, 888 Holdings, was also interested in buying Cashcade, but pulled out over the company's hefty asking price.

Said 888 Holdings chief executive officer, Gigi Levy, 'We had bank financing for the acquisition, we just didn't want to pay the price they were asking for. 888 was interested in acquiring Cashcade, but there were clearly other companies more interested in it and who were willing to pay more for it then we were.'

With PartyGaming being one of those companies, many online gambling insiders were not very surprised when PartyGaming stepped up to the Cashcade plate, especially considering the company's current and high-profile growth drive and objective to dominate in all areas of the global online gambling industry.

Hard hit by the current recession, struggling UK newspaper publishing group and 20 percent shareholder of Cashcade, Independent News & Media welcomed the acquisition. As part of the deal, PartyGaming will pay Cashcade £75 million up front, and the remaining 25 million based on its 2009/2010 performance.