PartyGaming / Empire Online & Intercontinental Online Gaming

Listed online gaming firm PartyGaming Plc has announced the acquisition of businesses and assets from both Empire Online [EOL] and Intercontinental Online Gaming in a deal worth USD 66.3m combined.

From the former, PartyGaming is acquiring the assets, players and gaming related contracts associated with Empire Online's gaming business; from the latter it is acquiring all of its business and assets. Neither EOL nor Intercontinental accept bets from customers in the United States.

Both deals will be financed by the issue of 115,193,842 new PartyGaming shares. In a statement today, PartyGaming said it expects the businesses and assets being acquired to generate clean EBITDA of at least USD 8.5m, comprising USD 6.0m from EOL and USD 2.5m from Intercontinental, and to be earnings enhancing in 2007.

Online gaming websites operated by EOL and Intercontinental that are being acquired by PartyGaming include: NoblePoker.com, Clubdicecasino.com, EnterCasino.com, MissBingo.com, FairPoker.com, and MagicBoxCasino.com. Subject to completion a software licensing agreement will also be entered into with Playtech, which hosts the sites being acquired from EOL and Intercontinental.

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