Bingo conglomerate Cashcade has been bought by Party Gaming, in a move which sees major bingo brands Foxy Bingo, Think Bingo, Cheeky Bingo, Little Big Bingo and Bingo Scotland moving over to Party Gaming in a multi-million pound acquisition.

Party Gaming will pay an upfront amount of £71.9 million and depending on the company’s future growth; they will pay out up to an additional £24 million to Cashcade.

Terms of the agreement stipulate that Party Gaming must pay Cashcade shareholders in March 2010 if the company’s 2009 earnings before tax, depreciation and amortisation (EBITDA) are at least 15 million and a further 9 million in March 2011 if Cashcade’s 2010 EBITDA are at least £19 million.

Party Gaming CEO Jim Ryan said that taking over Cashcade was a move to acquire business in the top gaming sectors, giving them access to significant revenues:

“Cashcade provides us with an excellent platform to build a meaningful share of the $1.5 billion global online bingo market… Our longer-term strategic objective is to become the market-leader in online poker, casino, sports and bingo.” he said. With a significant bingo portfolio, Cashcade generated net revenue of £44.9 million in 2008 across its online bingo sites as well as additional funds acquired from its other gaming sites such as Get Minted and Foxy Flutter.

Cashcade’s bingo network is served by the 888 platform, owned by 888 Holdings, one of Party Gaming’s biggest rivals. The contract for this is set to expire in 2012.