London-listed gaming operator 888 Holdings has agreed an £18m deal to acquire a number of online bingo brands from JPJ Group.
The brands make up JPJ’s Mandalay operating business and include Costa Bingo, with the acquisition intended to strengthen 888’s position in the UK online bingo market.
The agreement will see 888 subsidiary Brigend acquire certain assets of JPJ subsidiaries Jet Management Group and Jet Media for a total consideration of £18m in cash, of which £12m will be payable upon completion and the remaining £6m in September 2019.
The JPJ bingo brands have operated on 888’s B2B platform Dragonfish since 2009.
“The Group continues to deliver its stated strategy of expanding across global regulated markets. This expansion is underpinned by organic growth initiatives supported by exploring value-enhancing M&A,” said 888 chief executive Itai Pazner.
“We are pleased to announce the acquisition of this portfolio of brands which includes the well-established Costa Bingo. Having been developed on Dragonfish, the Group's first-class B2B platform, we are confident that consolidating these brands into our existing B2C portfolio will deliver synergies and growth opportunities by applying the full extent of 888's core capabilities in product, marketing and customer relationship management to their operations.”
JPJ Group said that the sale of assets would enable the company to concentrate on a more focussed brand strategy in the UK through Jackpotjoy.
The Mandalay assets generated revenue of approximately £11m in 2018 with a pre-tax profit of approximately £3.7m.
Shares in 888 Holdings plc. (LSE:888) were trading up 1.47 per cent at 174.54 pence per share in London Tuesday morning.