Billion Dollar Bingo: Intertain Group Acquires Gaming Brands from Gamesys

After dropping the hint in late January that it was in “advanced discussions with a third party regarding a significant acquisition of certain assets.” Intertain Group (Intertain Group Stock Quote, Chart, News: TSX:IT) pulled back the curtain on that acquisition this morning.

The company announced that it was acquiring three gaming brands, including U.K. online bingo leader Jackpotjoy, on-line slot site Starspins, and Spanish online bingo leader Botemania from Gamesys for 425.8 million British pounds sterling (approximately $809-million Canadian dollars).

The company says it believes the transaction will instantly turn Intertain into the largest provider of on-line, bingo-led gaming.

“Our stated vision is to focus on the female demographic, in regulated markets,” said Intertain CEO John Kennedy FitzGerald. This acquisition is consistent with this vision. We feel privileged to be inheriting this strong community of players. We have not only acquired the leading on-line, bingo-led business, but we are also entering into a long-term relationship with one of the most well-respected, technology and gaming operators, Gamesys.”

To finance the deal, Intertain says it will sell 28-million subscription receipts at a price of $15.00 each for gross proceeds of $420.0-million. The purchaser is Canaccord Genuity and an unnamed group of underwriters. The company will also arrange senior credit facilities of (U.S.) $352.5-million with Macquarie Capital (USA) Inc.

At press time, shares of Intertain Group were down .6% to $16.65.

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