|The board of Gaming Corporation plc, owner of the UK gaming website www.casino.co.uk, has announced the acquisition of Newbold Enterprises Limited, the holder of Gambling.com.|
Online casino portal, Gambling.com, has provided casino, poker, and sports betting search since 1997. Income is primarily generated through pay per click advertising where clients bid to reach higher rankings in the search results, a model used by other search companies such as Google and Overture.
Gambling.com's proprietary technology includes an International and UK specific pay per click bid management search engine. This allows advertisers to create and self manage their search listing campaigns from online deposits through to bid management and real time reporting.
Like all the major pay per click search engines, Gambling.com uses complex algorithms and strict editorial to maximize efficiency for advertisers and end users alike. This technology can be licensed to operators in other industries giving them the opportunity to create their own destination search sites.
The consideration for the acquisition of Newbold is $20million (£10.5million) to be satisfied as to $15.3million (£8.0million) in cash and $4.7million (£2.5million) in new ordinary shares. A total of 17,375,244 Gaming Corporation shares are being issued, of which approximately 7.38million are subject to a lock-in of six months and the balance has been placed on behalf of the vendors of Newbold with institutional investors. As at 28 April 2005, Newbold had a net cash balance of over US$850,000, which implies an enterprise valuation for the business of US$19.15milion (£10.1million).
'This acquisition is a major step in the evolution of Gaming Corporation,” said Justin Drummond, Gamin Corporation Chief Executive, “Gambling.com is the leading global online gaming search brand and a very profitable and fast growing business'.
'This acquisition forms part of Gaming Corporation's strategy of building a portfolio of gaming brands that attract a worldwide audience.'