Bingo operator Stride Gaming looks to raise £10m in IPO
Kitty and Lucky Pants Bingo founders hope look to capitalise on post PoC UK bingo market with more acquisitions likely
Multi-branded bingo-led operator Stride Gaming has announced its intention to float on London’s Alternative Investment Market, hoping to raise around £10m to power further growth.
In a statement released this morning, the firm said that directors “believe there are a number of growth opportunities for the group” and that the money raised will “support the company’s strategic buy and build and organic growth strategies”.
Stride operates a number of bingo brands including Kitty Bingo, Lucky Pants Bingo, Bingo Extra, Jackpot Café, Jackpot Liner, King Jackpot, and also runs online casino brands Spin and Win and Magical Vegas.
The executive team is led by CEO Eitan Boyd, who founded the Globalcom bingo network and the Wink Bingo brand, while the board is headed by former Sportingbet CEO Nigel Payne as non-executive chairman.
“We feel this is an opportune moment for a scale bingo-led operator to come to AIM to capitalise on the opportunities afforded by the regulatory changes, which is forcing consolidation in the industry, to grow organically and through acquisition,” Payne, Stride’s non-executive chairman, said.
“Our business is profitable, established and run by a highly experienced and proven management team. Today’s news marks an important step in our aim to become the market leader in online bingo,” he added.
Stride operates Kitty Bingo and Lucky Pants Bingo through its Daub Alderney subsidiary, which launched on proprietary software in 2012, and the “Jackpot” brands through Table Top Entertainment, a firm it acquired along with its software provider NextTec in September 2014.
The directors believe there is an opportunity for Stride to capture further market share in the bingo vertical from competitors, including the large casino and sports betting operators, through organic growth and strategic acquisitions.
The firm reported a 40% year-on-year growth in NGR in Q1 2015 and the firm reported EBITDA of £853m for the 12 months ended August 2014 for its Daub Brands and £3.26m from its TTE brands for the 8 months ended August 2014.
Stride also announced a 25% year-on-year increase in active players during 2014 to more than 250,000, the majority of which are in the UK.
The management team behind Stride, Eitan Boyd and Darren Sims, has had previous success growing and selling firms in the online bingo vertical.
The duo previously sold Globalcom, a bingo software business, to 888 for $42m in 2007, while Boyd also sold 888 the Wink Bingo and Posh Bingo brands for £60m in 2009.