888 boss denies "advanced talks" with Cashcade 05/05/2009
Jon Parker
888 is not in “advanced talks” to takeover Cashcade, chief executive Gigi Levy told eGaming Review today, dismissing widespread speculation that a deal is imminent.
Commenting on a story earlier today by Reuters stating that 888 was in acquisition talks with up to five companies, one of them at an “advanced stage”, Levy denied categorically that the company in question was Foxy Bingo parent company Cashcade, which is currently going through a bidding process.
The newspaper group Independent News and Media (INM) holds a 20% shareholding in Cashcade and needs to raise funds as it has to repay €200m this year. INM is understood to have a clause in its stakeholding which can force it to push a sale through. Cashcade is available for between £70m and £100m, according to sources close to the deal, which is being handled by the investment bank Jefferies.
888 already owns bingo software company Globalcom, which it purchased in March 2007 for US$32.4m and which Cashcade operates on, and a takeover of Cashcade by 888 has long been rumoured.
An acquisition would consolidate Cashcade as a key licensee revenue source for 888 and prevent it from falling into the hands of competitors such as Gamesys, owner of Jackpot Joy, one of the UK’s biggest bingo sites.
However, speaking to EGRmagazine.com this afternoon, Levy said that while 888 was “interested in Cashcade and [is] involved as an interested party”, the advanced talks mentioned by Reuters relate to a different company.
Levy would not confirm which the five companies are, only that they are of particular interest “because they are better value and or more value strategically”.
“Right now there are lots of opportunities out there because there are companies that are struggling or that can see it will be hard to maintain growth because they are too small,” he said.
As reported on EGRmagazine.com earlier, 888 released its first quarter financials today, showing revenue down 4% on the previous quarter (more).
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Posted: 05/05/2009
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