Interactive gaming firm NetPlay TV has announced that it will be making a number of redundancies following a decision to relocate the operational business of Bingos.com from Mallorca in Spain to its base in London.
NetPlay TV purchased the online bingo site in mid-March for $10.63 million before carrying out a comprehensive review of the group's activities and current operational structure in order to identify achievable strategic synergies.
The firm revealed that the move to its existing television and operations offices in the UK, which will include key management figures such as Chief Executive Officer Dominic Mansour, should see it achieve significant monthly savings. The redundancies will come in areas where there is a duplication of services between NetPlay TV and Bingos.com and the firm has already begun the necessary consultation processes. NetPlay TV revealed that the costs of these redundancies along with the restructuring is expected to be equivalent to the $902,113 payment it had already negotiated with vendors for Bingos.com, resulting in a neutral cash flow effect.
”NetPlay has delivered significant growth over the last twelve months including a number of key acquisitions and now moving all of our operations to the UK makes obvious sense,” said Martin Higginson, Chairman and Chief Executive Officer for NetPlay TV.
“Many of the functions within the Bingos.com business were duplicated by our current team and, therefore, it is right that we have been able to make a number of significant savings.
“In addition, we have used this opportunity to strengthen other areas of our business in particular the technical team. With the key members of the bingo team relocated in the UK, we will be able to work much more closely together as a team allowing us to continue growing the business with the speed and dexterity we demand.”