A leading global online bingo operator has announced a definitive agreement for the sale of its Mandalay operating business.

888 has acquired the portfolio of successful bingo brands, including Costa Bingo.

The sale, to a subsidiary of 888 Holdings, is for a total cash consideration of £18 million.

Mandalay generated approximately £11 million of revenue and approximately £3.7 million of profit before tax attributable to the assets in the twelve months to 31 December 2018.

The acquisition is set to strengthen 888's position in the UK online bingo market and enables the Group to take full marketing control of a number of additional bingo brands.

On completion of the Mandalay sale, £12 million of the cash consideration will be paid to the Group with the remaining £6 million expected to be paid in September 2019.

“The Group continues to deliver its stated strategy of expanding across global regulated markets,” said Itai Pazner, Chief Executive Officer of 888.

“This expansion is underpinned by organic growth initiatives supported by exploring value-enhancing M&A.”

"We are pleased to announce the acquisition of this portfolio of brands which includes the well-established Costa Bingo.

“Having been developed on Dragonfish, the Group's first-class B2B platform, we are confident that consolidating these brands into our existing B2C portfolio will deliver synergies and growth opportunities by applying the full extent of 888's core capabilities in product, marketing and customer relationship management to their operations."