Intertain Group Has Just Purchased Online Bingo Company Mandalay Media

June 5, 2014

Cryptologic of Canada has been out of the news for quite some time it seems. But this is ab out to change, as the owner of Cryptologic, Intertain Group, has just purchased Mandalay Media, a UK online bingo company, and we believe that Cryptologic is likely to be involved in integrating online bingo from Mandalay Media into its online casino software platform.

Intertain Group, who also own Canadian based Cryptologic, has just paid just of $82 million for Mandalay Media. A company that operates several online bingo sites in the UK. This is quite an interesting acquisition. Financially, it seems sound, as Mandalay Media generated 16.1 million in revenue in 2013.

Aside from the $82 million purchase fee, Intertain Group has also promised a performance payment of a further $28 million. Intertain Group floated on the stock exchange in Canada back in February, and this is the first major acquisition the company has made since this time.

Now, what we really think is interesting, is that Intertain Group has access to a rather nice resource in the form of Cryptologic, a company that only a couple of years ago, was at the very forefront of online gambling software development. This deal that sees Intertain Group buy Mandalay Media and gain access to several online bingo sites, makes us wonder whether Cryptologic and its value will be leveraged to do one of several things.

Firstly, it could be possible that Intertain Group will decide to integrate all of the online gambling games that have been previously developed by Cryprtologic into the online bingo sites that it is acquiring when it buys Mandalay Media, this simply just makes sense, it should be a fairly simple thing to do.

The other option is that Cryptologic takes all of the online bingo games currently developed by Mandalay Media, and bringing them into its own online casino platform, making them available to online casino operators that currently license online gambling content from Cryptologic.

In reality, it actually makes a lot of sense for Intertain Group to do both of these things, and this extract the most value from the procurement of Mandalay Media, and also exploit the value of owning Cryptologic of Canada, a company that has in recent months, seemed to lose momentum. It will be interesting to see which of these two route, or maybe both, that Intertain Group takes once the merger is completed.