888 Online Casino Group Buys Wink Bingo - 12-31-09

December 31 - 888 is one of the world's biggest gambling operators, and the acquisition of the Wink Bingo business from Daub Limited further cements their position as a leading online bingo player.

Wink Online Bingo own and operate numerous successful bingo brands WinkBingo.com, PoshBingo.co.uk and BingoFabulous.com, The sites are already operated by 888’s Dragonfish, an independent business-to-business division that operated third party gambling websites.

According to 888 reports, Wink was launched early in 2008 and as acquired a customer base of 60,000 active players. Revenues for the last eleven months amounted to £15 million and profits before tax were £1.5 million.

888 pay Daub eleven million pounds up front for the business followed by an earn-out subject to certain adjustments. The earn-out payment will be performance-based between ‘five and six times earnings before interest, tax, depreciation and amortisation of Wink Online Bingo during the twelve-month period ending March 31, 2011 and will be paid in cash’. 888 stated that the earn-out payment is expected to be made during the second quarter of 2011 and has been capped at £59.7 million.

“We are delighted to announce the Wink Online Bingo acquisition as an expansion of our business-to-consumer online bingo footprint in the lucrative UK market,” said Gigi Levy, Chief Executive Officer for 888.

“The Wink team has a proven track record of excellence in marketing, customer retention management and execution and will be a great addition to our growing bingo business.

“In addition, the transaction is financially attractive and will be earnings enhancing.”

Read our review of 888 Casino.