PartyGaming Takes Over Two Online Gaming Companies

PartyGaming has taken over 2 online gaming companies, Empire Online and Intercontinental Online Gaming. PartyGaming spent $66.3 million on the acquisition of both companies.

As a result of the acquisition, PartyPoker will also become the new owner of Noble Poker and Club Dice Casino. Both online pokersites are part of Empire Poker's network. PartyPoker will also own Intercontinental Group's Casino Las Vegas and Fair Poker.

In 2007, PartyPoker is anticipating profits of $6 million from the Empire Online sites, and $2.5 million from the Intercontinental sites. "These acquisitions represent excellent value for our shareholders and are consistent with our strategy," said PartyPoker Chief Executive Mitch Garber.

"The addition of a number of well-known secondary brands will provide opportunities for cross-promotion, increasing customer choice and satisfaction and maximizing the long term value of current and future players," Garber added.

Empire Online's staff will also be absorbed by Party Gaming. As part of the acquisition terms, they will have shares in a $10 million incentive scheme.

All the sites from both online gaming companies are licensed by Playtech, and PartyPoker is set to have talks with Playtech once the deals have been finalized. Since PartyPoker has its own casino and poker software, it has not been confirmed yet whether Playtech will still be part of the picture once management has been turned over.

February 11, 2007
Pauline Davis