Moneybookers for Sale
U.K.-based payment processor Moneybookers is up for sale for a reported £100 million (US$189.7 million). Founded in 1964, the company has an estimated 2.3 million account holders. Industry rival Neteller is rumored to be among the front-running suitors; on the heels of the U.S. I-gaming prohibition bill passing, Neteller is looking to increase its European presence and diversify. Moneybookers' 2006 revenue is projected to reach nearly £8 million ($15.1 million), with pre-tax profits of approximately £4 million ($7.59 million). Egaming Review reports that a spokesperson for financial advisory firm Longacre Partners (LP) did confirm that LP was conducting a "strategic review" for Moneybookers, but said there was "nothing definite" about what they would recommend.
A New Player in the Tote Hunt
Private equity firm Principal Investment Area (PIA), part of investment firm Goldman Sachs, is thought to be in the running for the government-owned British Tote. The Sunday Express reports that PIA will one-up Gala Coral's recent £405 million offer and face competition from at least two other interested parties, including a U.K. racing consortium whose £320 bid was rejected in September.
eBet to Acquire Octavian
Gaming technology company eBet announced that it has reached an agreement to acquire assets of U.K.-based Octavian Gaming Systems. The new company will be called Octavian Global Technology. The initial purchase price for the Octavian Group will be $23.2 million, calculated on the basis of a multiple of 7.68 times forecast NPBT (net profit before tax) of $3 million for the Octavian Group for the year ended Dec. 31, 2006. This will be paid in the form of 136.8 million eBet fully paid ordinary shares of $0.22 per share. Additional payments--a mixture of cash and ordinary shares, with ordinary shares being issued at prices of $0.22, $0.25, $0.27 and $0.30 per share in each of the years 2007 through to 2010--will be made subject to achievement of paid sales of Octavian products over the next four years. eBet is looking to finalize all transaction documents by the end of 2006, with a targeted date of completion in February 2007. Each party has agreed to deal with the other for a non-exclusive period of 90 days.
Fun Technologies to Benefit from Don Best Holding
Toronto-based Fun Technologies will be safeguarded from an adverse cash position by revenues generated at its sports-betting information site Don Best, according to an industry analyst. "They have $14 million in the bank," said the analyst. "But they are going into the third and fourth quarters when Don Best generates cash. That will shield the company." The online and interactive skill games provider, which reported its third quarter results on Nov. 13, blew through over US$6 million in cash in the three months to the end of September and has $14 million of cash or cash equivalents left. Despite reporting revenues in the period of over $13 million, the company made a loss from operations of over $9 million. For the nine months to the end of September, it recording losses of $19.4 million. "They are not showing that the skill gaming division is able to generate any return," the analyst said. "They have revenue and they've got good contracts, but they are not good at monetizing it."