Cashcade sold to PartyGaming

Cashcade: the largest provider of online bingo entertainment to UK-based players

Founded in 2001, British firm CashCade is the largest provider of online bingo entertainment to UK-based players with leading brands such as FoxyBingo.com, MirrorBingo.com, ThinkBingo.com and CheekyBingo.com.

Acquisition of Cashcade for £95.9m is in line with PartyGaming’s strategy of strengthening its position in the online poker, casino, sports and bingo markets

PartyGaming, the listed Gibraltar-based online gaming portal operator, has acquired Cashcade from Independent News & Media, the listed Irish based newspaper and communications group, and other private individuals, on a debt free cash free basis, for a cash consideration of GBP 95.9m.

Prior to the transaction, Independent News & Media held an 18% stake in Cashcade. The transaction includes an initial payment of £71.9m, and an additional payment of £24m related to future profit performance. The £24m comprises of £15m to be paid to Cashcade shareholders in March 2010 if Cashcade’s EBITDA for the 2009 equals £15m, and £9m in March 2011 if Cashcade’s EBITDA for the 2010 equals £19m.

The deal sees PartyGaming’s share of the global online bingo sector increase to around 6% while it will possess a 23% stake of the UK market, which is estimated to be worth over £245m.

GCA Altium acted as financial advisor to the sellers.

Related Transactions

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• GCA Advisors, LLC, a Delaware limited liability company, registered broker-dealer and FINRA (www.finra.org) and SIPC member firm (www.sipc.org). GCA Advisors, LLC provides independent financial advice on matters related to Mergers & Acquisitions, Debt Capital Markets, Recapitalization & Restructuring, Cross Border and Strategic Alliances, Special Committees, Private Funds, Private Placements and Venture Support. Check the background of GCA Advisors, LLC on FINRA’s BrokerCheck (brokercheck.finra.org).
• GCA Altium Limited, a company providing financial advisory services in the UK, Switzerland, Germany, Italy and Israel and incorporated under English law, is authorized and regulated by the Financial Conduct Authority in the United Kingdom and provides independent financial advice on matters related to Mergers & Acquisitions, Debt Capital Markets, IPOs, Recapitalization & Restructuring, Cross Border and Private Placements.
• GCA Corporation, a company incorporated in Japan which provides financial advisory services on matters related to Mergers & Acquisitions, Cross Border, Private Placements & IPOs, Growth Strategy Services, and Post-Merger Integration.
• GCA China Company, Limited, a company incorporated in Shanghai which provides financial advisory services in China on matters related to Mergers & Acquisitions, Cross Border, Mezzanine Financing, Growth Strategy Services, Due Diligence and Post-Merger Integration.
• GCA India Company, Limited, a company incorporated in Mumbai which provides financial advisory services in India on matters related to Mergers & Acquisitions, Cross Border, Mezzanine Financing, Growth Strategy Services, Due Diligence and Post-Merger Integration.
• AMPLIA, a subsidiary of GCA Corporation in Japan, provides Venture Support services in Japan and the US.
• GCA FAS, a subsidiary of GCA Corporation in Japan, provides Due Diligence advisory services and M&A transaction services.
• MCo Corporation, a subsidiary of GCA Corporation in Japan, provides Mezzanine Financing in Japan.