The Carlyle Group is divesting its interest in Buzz Bingo to Intermediate Capital Group (ICG) at a substantial deficit.
Carlyle’s decision follows its withdrawal from a recent financing round, opting to liquidate its position. The investment firm originally committed £22 million (approximately $30.6 million) in the summer of 2020 but chose against additional investment after the difficulties presented by the UK’s third national lockdown.
ICG, an established partner of Buzz Bingo, intervened to furnish £18 million in financing. This capital infusion, along with a £10 million credit facility from Barclays Bank, aims to fortify Buzz Bingo’s resurgence as it navigates the operational hurdles imposed by the pandemic. The resources will be allocated to support continued investment and the expansion of Buzz Bingo’s digital footprint.
Buzz Bingo Chief Executive, Chris Matthews, conveyed confidence in the transaction, asserting that it equips the company with the requisite capital to flourish as lockdown measures abate. He acknowledged the obstacles encountered by the enterprise, emphasizing that they had only been operational at full capacity for roughly six weeks since March 2020.
Notwithstanding the challenges faced by its physical venues, Matthews highlighted the expansion of Buzz Bingo’s online platform, Buzzbingo.com. He observed that the platform, inaugurated just two years prior, has already ascended to a prominent position within the UK market.
The well-known UK bingo hall company, Buzz Bingo, is eagerly anticipating the return of its devoted customers on May 17, 2021. Following an extended shutdown caused by the global health crisis, each of the 91 venues throughout England is poised to recommence operations.