Intertain Group to buy U.K. bingo business
TORONTO - The Intertain Group Ltd. (TSX:IT) has agreed to pay about $82.4 million in cash, or more if certain targets are reached, to acquire Mandalay Media Ltd. — owner of several online bingo websites in the United Kingdom.
Intertain is the parent of CryptoLogic, an online gaming company that offers casino and poker games.
Mandalay's bingo business generated about 16.1 million British pounds of revenue and 7.9 million pounds of net income in the financial year ended Aug. 31, 2013.
Intertain has agreed to initially pay 45 million pounds ($82.4 million) for Mandalay and up to 15 million pounds ($27.5 million) in performance fees linked to future profit, making the deal potentially worth about $110 million, based on current foreign exchange rates.
The company, which began trading on the Toronto Stock Exchange in February, also said the deal is subject to financing and is in discussions with various capital providers.
According to its most recent financial report, Toronto-based Intertain had $2.9 million of revenue and a $1.9-million net loss in the three months ended March 31. There's no year-earlier comparables because the company is in its first year in the current form.
One of its predecessor companies, Aumento Capital II Corp., was previously listed on the TSX Venture Exchange.