Intertain Group, a Toronto-based online gaming company, announced today that it was in advanced negotiations with an undisclosed third party. The company is said to soon complete an important acquisition of certain assets worth CAD $1 billion, equivalent to USD $805 million or €710 million. Speculations abound that the company to be acquired will be UK igaming operator Gamesys Group, who owns online bingo brands JackpotJoy.com and Heart Bingo.
The Canadian operator released a statement on Tuesday announcing that discussions about a potential acquisition are ongoing, news that immediately led to the suspension of trading on Intertain shares on the Canadian stock market. Rumours within the e-gaming sector allege that the acquisition target could well be Gamesys, a UK based business with strong links within the European igaming market.
Founded in 2001 by Noel Hayden with his team of developers, the Gamesys Group was established with the aim of becoming one of the most successful online entertainment businesses. Currently, they have approximately a thousand employees. Their headquarters is in Central London and they operate several U.K. and European casinos. Gamesys recently became the first international company to provide real cash gambling applications on the Facebook platform.
Gamesys was declared in the Sunday Times 2006 Tech Track 100 as the U.K.’s fastest-growing private-technology company. The list is collected by Fast Track and ranks Britain’s fastest growing technology firms by sales. Gamesys develops money slots, casino and bingo sites, and has games based on U.K. TV shows like: The Price is Right, Strike It Lucky, and Deal or No Deal.
Intertain Group provides wagering focused entertainment to a global consumer base. The online gaming holding company offers poker, bingo, and casino games through InterPoker, InterCasino, Costa Bingo, and Vera&John. The company is said to be actively pursuing further expansions and acquisitions to build up its gaming product portfolio. John Fitzgerald is the company’s Chief Executive Officer (CEO). He is also the CEO and Director of The Interactive Gaming Council. Fitzgerald also co-founded Ethoca and Virgin Gaming. Keith Laslop is the company’s Chief Financial Officer (CFO) and served as President of online gaming security Prolexic Technologies.
InterCasino has been operating for 18 years now and is considered as one of the oldest online gaming operations worldwide. There are approximately 18,000 players who visit their sites daily and four million registered customers across all their brands. Total dollars wagered across all their gaming sites have reportedly amounted to $26 billion dollars.
Intertain shares increased up to 8% to $15.99 after the company announced their plans to make an acquisition in the CAD $1-billion range and discussions with an unidentified third party. Last year, the company also undertook a deal to acquire Dumarca Holdings, with an initial payment of €44.5 million in cash. Dumarca Holdings is the parent company of Vera&John, an internet gaming operator. Intertain also acquired Mandalay Media, which owned some of U.K.’s popular bingo websites, with $82.4-million.