PartyGaming Buys Rival

PARTYGAMING yesterday confirmed that it has clinched a £100m deal for the owner of bingo website foxybingo.com, Cashcade.

Partygaming is believed to be paying £75m upfront for Cashcade, with £25m to be paid at a later date depending on the group's performance this year and in 2010.

In April Partygaming reached an agreement with US Department of Justice over its activities in the US prior to the industry being effectively outlawed by legislation in 2006.

Chief executive Jim Ryan said that  the company regarded the settlement as paving the way for it to drive consolidation. Cashcade is believed to be the first of many M&A deals.

The £100m sale is a well-timed windfall for embattled newspaper publisher Independent News & Media which owns a 20 per cent stake in Cashcade and needs cash.

Source: www.cityam.com/