Party buys Noble

Market consolidation among online poker operators is not only very fashionable at the moment, but absolutely essential to the successful future of the industry as a whole.

The latest deal is PartyGaming’s acquisition of Empire Online Limited, which runs Noblepoker.com; and Intercontinental Online Gaming.

PartyGaming is acquiring the assets, players and gaming related contracts associated with Empire Online’s gaming business and all of Intercontinental Online Gaming’s business and assets. Neither EOL nor Intercontinental accept bets from customers in the United States.

The new arrangements will expand Party’s casino and poker operations and also strengthen both the company’s management and marketing teams.

PartyGaming expects the businesses and assets being acquired to generate revenue of at least $8.5 million, comprising $6.0 million from EOL and $2.5 million from Intercontinental, and to be earnings enhancing in 2007.

The online gaming websites operated by EOL and Intercontinental that are being acquired by PartyGaming include: NoblePoker.com, Clubdicecasino.com, EnterCasino.com, MissBingo.com, FairPoker.com, and MagicBoxCasino.com.

Subject to completion a software licensing agreement will also be entered into with Playtech, which is one of the world’s leading companies in its field and hosts the sites being acquired from EOL and Intercontinental.

Mitch Garber, Chief Executive Officer of PartyGaming, commented: “These acquisitions represent excellent value for our shareholders and are consistent with our strategy. They bring incremental EBITDA and strong management with excellent marketing skills that will help us to accelerate our promotional plans for each of our individual products, particularly in casino which will continue to be spearheaded by PartyCasino.”

“The addition of a number of well known secondary brands, supported by the agreement with Playtech, will provide opportunities for cross-promotion, increasing customer choice and satisfaction and maximising the long term value of current and future players.”