The Online gaming giant 888 has announced plans to buy the internet bingo site, Wink Bingo, for nearly £60 million.  Following the strategy of Party Bingo buying Cashcade this year, it is hardly surprising that 888 is adopting the same ideas to increase their share of the UK bingo market.

Daub, owners of Wink bingo, would receive an a payment of £11 million plus a sum based in earnings in the year to March 2011, with the total capped at £59.7 million.

Wink, which runs online bingo networks including Wink Bingo, Posh Bingo and Bingo Fabulous, had over 60,000 active players in October this year, which 888 said made it one of the most popular online bingo sites.

Pacific Poker, owner of 888, said completion of the deal was dependent on certain factors, including obtaining the required consents.

Wink, which is a relatively new company being only launched in early 2008, generated revenues of £15 million and pre-tax profits of £1.3 million in the 11 months to November 30 this year.  Its success can be attributed to a strong marketing campaign including regular TV advertising in the UK.  The sits already operate on the 888 Dragonfish bingo platform making acquisition and integration a smoother process. 888 will have also had first hand experience of the operations of Wink bingo.

Chief executive Gigi Levy said the acquisition would help 888 expand its online bingo footprint "in the lucrative UK market".

The firm also issued a trading update and said it was confident of meeting management expectations for the full year.  In August, 888 reported pre-tax profits of 14.9 million US dollars (£9.3 million) in the six months to June 30, compared with 26.3 million dollars (£16.4 million) in the same period last year.  It said the half-year performance was solid against the background of weak consumer sentiment and volatile currency movements.