Fairground attracted to online casinos

Fairground attracted to online casinos An investment company with links to software firm Microgaming will debut on the London Stock Exchange in October with the aim of acquiring a portfolio of online casino sites. Fairground will raise £3.6m on listing to fund the acquisition spree, which is believed to focus on buying a range of smaller Microgaming-powered casino sites. However, analysts said the company could find difficulty in today’s heated merger and acquisition (M&A) market, with vendor expectations running high. “The key problem in today’s market is the valuation gap between the expectations of the acquirer and those of the vendor,” Paul Leyland, leisure analyst at Seymour Pierce, said. The firm’s admission statement said it had been formed with the “specific purpose of taking advantage of expected consolidation within the online gaming sector”. Fairground stressed it had built a “close relationship with Microgaming”, and Greg Harris, a technology analyst at Cannacord Capital, said this was its key asset. Evan Hoff, its chief executive, was one of the founders of South African marketing firm Forwardslah, which provides back-office support to Microgaming’s largest casino operator Carmen Media. Hoff told the UK media it would be looking to acquire “relatively small operators”. But there is speculation in the market Fairground could be used as for a reverse merger with a larger online casino operator. Reverse mergers are effectively a fast-track listing for firms looking to avoid the lengthy admission process. Earlier this year the AIM-listed cash shell Leisure & Gaming merged with Curaçao-based VIP sports in a similar move.