Stride Gaming looks for strategic buyers

The UK-based Stride Gaming, which operates Kitty Bingo and Bingo Extra, has announced it is open for a potential sale as part of a strategic move to maximise the value for shareholders.

The company is looking forward to expand its operations through acquisitions and also whether Stride should seek to participate in “potential industry consolidation through a sale of the company.”

Greg Johnson, analyst at Shore Capital, said that he saw merit in a tie-up with Mecca Bingo owner Rank Group.

“We see significant merit in combining Stride’s gaming assets, including its proprietary platform, with Rank, effectively doubling its online revenues.”

“Including likely material synergies, a tie-up with Stride would leave Rank in a stronger position to meet ongoing regulatory headwinds, transform the earnings profile of the enlarged group, as well as being potentially materially accretive.”

AIM-listed Stride, which is valued at £78.5 million, was fined by the Gambling Commission last year for compliance failings.

The firm added on Monday: “The group has a clear focus on winning and retaining mass market recreational customers on to its bingo and casino sites.

“Stride continues to leverage its infrastructure and proprietary technology to migrate more customers on to the Group’s higher margin proprietary platform and drive cost synergies across the business.

“The board believes the group will continue to be highly cash generative and the board remains committed to its revised dividend policy to distribute at least 50% of adjusted net earnings in dividends.”