Bullet Business

888 Holdings has entered, through a wholly owned subsidiary, into an agreement to acquire the assets comprising the Wink Online Bingo business from Daub Limited.
 
Gigi Levy, CEO of 888 Holdings, said the acquisition marks an expansion of group’s B2C online Bingo footprint in the lucrative UK market.
 
The consideration payable to vendor consists of base price and 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.
 
Wink Bingo, launched in early 2008, boasts of 60,000 active players.
 
Wink Bingo runs several online bingo networks including Wink Bingo, Posh Bingo and Bingo Fabulous. The network is operated on the Dragonfish bingo infrastructure.
 
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.