Exclusive: Gamesys acquires Virgin Games
Gamesys acquires Virgin Games for undisclosed sum and signs long-term deal to develop real money and social gambing propositions globally under Virgin brand.
Gamesys has acquired Virgin Games for an undisclosed sum and signed a long-term deal to develop real money and social gaming propositions globally under the Virgin brand, eGaming Review can exclusively reveal.
Founded in 2004 Virgin Games was 100% owned by the Richard Branson fronted Virgin Group primarily acting as a best of breed casino content portal with agreements signed with a number of suppliers including Playtech and Microgaming and hosting close to 300 games. It also operates bingo and poker via Virtue Fusion and Spielo G2’s International poker network. More recently it launched both mobile and tablet offerings in December of last year.
eGR understands Virgin Games has been seeking investment for a number of months in a bid to expand the business across Europe with its relatively small budget not able to withstand the long-term costs of entering and successfully growing in newly regulated markets as well as competing with rival operators.
The company was advised by Oakvale Capital founded and run by Daniel Burns, also an adviser to 888. The deal marks Oakvale’s second deal since it was set up a year ago following the sale of Marwyn Management Partners’ gaming arm to Gaulselmann Group’s Merkur Casino for £76m in October.
Virgin Games has been run by Simon Burridge since it was formed seven years ago, however it remains unclear as to whether or the other staff will remain as they enter into a four week consultation period with new owners Gamesys.
A Gamesys spokesman told eGR it would migrate the Virgin Games site onto its own platform and relaunch it in the UK later this quarter.
Gamesys Group CEO and co-founder, Noel Hayden, said he has been a “long term admirer” of the Virgin brand and all it stands for. “We are delighted to have the opportunity to leverage our unique platform, games and services to power Virgin gaming propositions around the world.”
Richard Branson, founder of Virgin Group added in a statement: “We are delighted the Gamesys Group has acquired Virgin Games and formed a partnership to build a global games business. Simon Burridge and his team built a strong platform and now with the help of the Gamesys Group we can expand further internationally. We believe the Gamesys Group shares our vision and will be great partners in the sector.”
Gamesys Group was founded in 2001 by Hayden, Robin Tombs and Andy Dixon and employs more than 700 people. Its rise to become one of the largest, most successful and most innovative has been one of the fastest in the industry with flagship brand JackpotJoy, its laser-like focus on customer service and customer acquisition and retention the principal factors behind its growth.
It rose nine places to fifth position ahead of Betfair, 888 and SkyBet in eGR’s most recent annual Power 50 list of the world’s 50 largest operators published in November last year. It became the first online gaming company to sign a real money deal with social network Facebook launching Bingo and Slots Friendzy in August last year priding itself on becoming the first mover in many areas of the industry including its innovative approach to marketing.
Its most recent stunt saw the company construct and float a giant 50 foot rubber duck down London’s Thames river as part of a campaign to drive traffic to JackpotJoy’s Facebook FUNdation app with the company promising to fund some of the best suggestions to bring the fun back to Britain.
Burridge, CEO of Virgin Games said: “With many new opportunities opening up across the world, it was important to attract a new partner to capitalise the power of the Virgin brand. We are delighted Virgin Games is being acquired by the Gamesys Group, whose track record of growth and innovation speaks for itself.”