Online gambling group 888 Holdings has announced it will acquire a number of JPJ Group online bingo brands, including Costa Bingo, as part of an £18m deal.
Costa Bingo, founded in 2009, was set up by BGO.com owner and super-affiliate Richard Skelhorn.
Alongside the Costa Bingo purchase, 888 has also acquired City Bingo and Sing Bingo from the Jet Management Group and Jet Media, which form the basis of the Mandalay operating unit.
The online gambling group will initially front £12m in cash following the closing of the acquisition, with the final £6m being paid in cash in September.
Itai Pazner, 888 Holdings’ new Chief Executive, said that the new deal will further strengthen the group’s position in the UK online bingo market.
“The group continues to deliver its stated strategy of expanding across global regulated markets,” commented Pazner. “This expansion is underpinned by organic growth initiatives supported by exploring value-enhancing M&A.
“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.”
The online gambling group has collaborated with the Mandalay brands since 2009, supplying its Dragonfish bingo platform to Mandalay media. JPJ Group confirmed that the Mandalay sale would allow them to optimise returns on its market investment through the development of its Jackpotjoy-focused single brand strategy in the UK.