As reported by: Reuters via Yahoo
Britain's PartyGaming said on Friday it was buying the Internet gambling operations of smaller rivals Empire Online and Intercontinental Online Gaming for $66.3 million in shares.

PartyGaming said it expected Empire's Web sites, including NoblePoker.com and Clubdicecasino.com, to generate core profit of more than $6 million in 2007, while Intercontinental's sites, including MagicBoxCasino.com, will generate more than $2.5 million.

Empire Online, the brainchild of Israeli entrepreneur Noam Lanir, will retain about $40 million, which will be combined with its existing cash pile of $250 million to establish a fund for investing in equities, bonds, derivatives and real estate.

A PartyGaming spokesman said, "These deals bring good secondary brands, new revenue streams and strong management with proven marketing skills, especially in casino."

PartyGaming said the deals were expected to be earnings enhancing in 2007, and after completion it would strike a deal with Playtech, whose gambling software powers the acquired Web sites.


Article By: Reuters via Yahoo