Global online bingo-led operator JPJ Group has announced the completion of its previously announced £18m sale of its Mandalay operating business, to 888 Holdings’ wholly-owned subsidiary Brigend Limited.
As a result of this finalisation, which sees a cash consideration of £12m being received by JPJ Group upon completion, with the remaining £6m to be paid during September of this year, 888 now owns a variety of brands that already appear on its Dragonfish platform.
888 states that as a result of this latest move it is “consolidating its position as one of the leading bingo operators in the UK,” having secured the portfolio which previously operated as business-to-business brands, but will now function on a business-to-customer basis.
Having previously operated on Dragonfish, the purchase gives “the group full control of these successful brands from a marketing perspective, to support and further strengthen its position in the UK online bingo market”.
Itai Pazner, chief executive officer of 888, said at the time of purchase initially being announced: “The group continues to deliver its stated strategy of expanding across global regulated markets. This expansion is underpinned by organic growth initiatives supported by exploring value-enhancing M&A.
“We are pleased to announce the acquisition of this portfolio of brands which includes the well-established Costa Bingo. Having been developed on Dragonfish, the group’s first-class B2B platform, we are confident that consolidating these brands into our existing B2C portfolio will deliver synergies and growth opportunities by applying the full extent of 888’s core capabilities in product, marketing and customer relationship management to their operations.”
Amongst the brands secured by 888 include Costa Bingo, City Bingo and Sing Bingo, with the firm attempting to turn around the fortunes of its bingo division, which it was revealed “remained challenging during 2018”.
Delivering its full year 2018 financial results yesterday, 888’s bingo operations brought revenues of $32.4m, a 17 per cent decrease from the previous year’s $39.3m, with full year figures recovering due to a strong casino and sport performance.