Acquisition of Wink Online Bingo and Pre-Close Trading Update
22 December 2009 (CAP PR Wire) — 888, one of the world’s most popular online gaming entertainment companies, announces that it has entered, through a wholly owned subsidiary, into an agreement to acquire the assets comprising the Wink Online Bingo business (“Wink Bingo”) from Daub Limited.
The transaction marks a further expansion of 888’s B2C emerging offering segment. The segment grew by 99% during the first three quarters of 2009.
Wink Bingo runs several online bingo networks including Wink Bingo, Posh Bingo and Bingo Fabulous. The network is operated on the Dragonfish bingo infrastructure. Wink Bingo was launched in early 2008, and now has over 60,000 active players in October 2009, making it one of the most popular sites for online bingo.
During the 11 month period ended 30 November 2009, Wink Bingo had revenue of £15 million and profit before tax of £1.3 million. As at 30 November 2009 Wink Bingo and its subsidiaries had gross assets of £1.6 million.
The consideration payable to vendor consists of (i) base price and (ii) earn-out subject to certain adjustments. The base price of £11.0 million will be paid in cash to the vendor at completion. The earn-out payment will be performance based between five and six times earnings before interest, tax, depreciation and amortisation of Wink Bingo during the 12 month period ended 31 March 2011 and will be paid in cash. The earn-out payment is expected to be made during the second quarter of 2011. The total maximum consideration payable by 888 to the vendor is capped at £59.7 million. Completion of the transaction is subject to satisfaction of various closing conditions, which include, among others, obtaining certain required consents.
Pre-Close Trading Update
In addition, 888 reports on trading prior to entering the close period in respect of its final results for the 2009 financial year. Further to the Q3 KPIs and Interim Management Statement, trading remains strong and is in line with management’s expectations. The Company remains confident about its prospects for the full year.
Gigi Levy, CEO of 888 Holdings, said:
“We are delighted to announce the Wink Bingo acquisition as an expansion of our B2C online Bingo footprint in the lucrative UK market. The Wink team has a proven track record of excellence in marketing, CRM and execution and will be a great addition to our growing Bingo business. In addition the transaction is financially attractive and will be earnings enhancing.”
Contacts and enquiries:
Gigi Levi, Chief Executive Officer +350 200 49800
Aviad Kobrine, Chief Financial Officer +350 200 49800
Ann-marie Wilkinson/Andrew Benbow +44 (0)20 7920 2344
This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Forward-looking statements may and often do differ materially from actual results. All statements, other than statements of historical facts included in this announcement, including, without limitation, those regarding 888′s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to 888′s products and services) are forward-looking statements that are based on current expectations. Such forward-looking statements are based on numerous assumptions regarding 888′s operating performance, present and future business strategies, and the environment in which 888 will operate in the future. Any forward-looking statements in this announcement reflect 888’s view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority 888 expressly disclaims any obligation or undertaking, to disseminate any updates or revisions to any forward-looking statements, contained herein to reflect any change in its expectations, with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Past performance cannot be relied upon as a guide to future performance.