888 Holdings Plc Takeover of Cashcade Intensifies

Monday May 25, 2009

888 Holdings Plc takeover of Cashcade saga has intensified over the past week as 888 have reportedly been in detailed talks with the Directors of Cashcade, but to date both parties seem to be very tight lipped as to whether formal takeover talks are being discussed. 888.com already supply Cashcade Ltd with their online bingo software GlobalCom for their bingo sites which include Foxy Bingo, Cheeky Bingo, Think Bingo and Bingo Scotland to name just a few, which is just one reason why a buyout has been rumoured for some time.

The Telegraph reported that a number of gaming companies have been after purchasing Cashcade including 'PartyGaming Plc' but 888.com seem to be in the top flight of these buyout stakes. Investment bank, Jefferies are said to be looking after the affairs of Cashcade Ltd after they instructed them to find a buyer for all or part of their business earlier this month. If a sale does go through it is thought that Cashcade would fetch something between £70 and £100 million.

Cashcade Ltd have been going from strength to strength over the years, just nothing seems to have stopped the growth of their company not even the recession going on in the UK at the moment and lots of other parts of the world come to that. Whilst other companies have seen loses in the same bingo gaming sector as Cashcade Ltd, this was most certainly not the case for them as they registered astronomical profits at Companies House in December 2008.

For marketing campaigns they are also right up there with all the big guns, they even ranked no 1 for best creative between 23rd and 29th March 2009 for the Foxy Bingo TV ad campaign on the Adwatch Marketing Poll for the UK Trade Magazine. This was no small feat considering they were up against over big advertisers like Pizza Hut, Walkers and Diet Coke to name just a few at the same time.

As to whether 888.com will take over Cashcade Ltd, may come down to if they can raise the capital needed with their banks, after all £70 to £100 million pounds is not pocket change! This will pretty much be a waiting game within the bingo industry now to see just who manages to acquire Cashcade, if anyone at all because with these things until all parties have signed on the dotted line, you just never know what will unfold.