Partygaming Clinches Empire Deal

Online gambling firm Partygaming has confirmed it is to buy the gaming assets of rival Empire Online for £19.2m ($37.96m).

The deal will see Partygaming take control of online gambling sites such as Noble Poker and Club Dice Casino.

Empire said the recent crackdown on internet gaming in the US, where most of its business was based, had made it impossible for it to stay independent.

In a separate deal, Partygaming is also acquiring the gaming assets of Intercontinental Online for about £14m.

Analysts have been expecting a wave of consolidation in the industry ever since the US clampdown came into force in November.

British firms have had to withdraw from the US and focus on other markets, but expects believe that many will now find it difficult to survive.

Partygaming said it expected the twin deals to boost its earnings by more than £4m.

"These acquisitions represent excellent value for our shareholders and are consistent with our strategy," said its chief executive Mitch Garber. "The addition of a number of well-known secondary brands will provide opportunities for cross-promotion, increasing customer choice and satisfaction and maximising the long term value of current and future players."

Empire said it planned to become an investment company after selling off its internet gambling assets, which must still be approved by shareholders.

The firm's Online Casino generated revenues of $30.2m in the first six months of 2006, while its poker site made $8m.