Expert examines online gambling firm's bingo drive
Posted by Sarah Banks on 27 Jul 2009 at 10:07
The high-profile purchase of Cashcade by PartyGaming is "strategically interesting" for the web gambling specialist, one expert has said.
PartyGaming has splashed an initial £71.9 million, with a further performance fee of £24 million in the pipeline, on the owner of Foxy Bingo.
Quoted by The Times, Ivor Jones, of broker Evolution Securities, said: "PartyGaming is going to employ some of its cash pile on acquiring Cashcade. Given the poor returns on cash, this is bound to be materially earnings enhancing but it is also strategically interesting.
"Having acquired the best of the UK bingo operators, the product and skills can be rolled out across the Party network — both its business-to-business and business-to-consumer operations implying material revenue synergies."
