Canada’s Intertain Group has completed the acquisition of UK online bingo operator Mandalay Media for an initial payment of £45m.

The initial payment is exclusive of working capital adjustments, with up to a further cash payment of £15m contingent on future profit performance. Mandalay has been acquired on a debt-free basis.

“We are very excited about the acquisition of Mandalay Media, which will add substantial free cash flow to the business and enhance our current casino offering to include a bingo segment,” said John Kennedy FitzGerald, CEO of Intertain.

Launched in 2009, Mandalay owns some of the UK’s leading online bingo websites, including Costa Bingo, Sing Bingo, City Bingo, Fancy Bingo and Rio Bingo, all of which operate on the Dragonfish platform. It also owns leading affiliate sites Casino Choice and Ignite.

The all-cash acquisition was financed by the net proceeds of the previously completed $103.5m offering of securities consisting of $52.3m of equity subscription receipts and $51.2m of equity-linked debenture subscription receipts, inclusive of subscription receipts issued pursuant to the exercise in full of the underwriters' over-allotment option.

The offering was undertaken on a bought deal basis by a syndicate of underwriters led by Canaccord Genuity Corp.

In a separate announcement Monday, Intertain said that it has received confirmation from the Toronto Stock Exchange (TSX) that the debentures and warrants issued by the company will commence trading on July 16th.

In aggregate, 7,475,000 common shares, 3,915,750 warrants and 51,175 debentures have now been issued.

Shares in Intertain Group Limited (Co. Data) (TSX:IT) closed at CAD$6.70 per share in Toronto Monday.

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