When Israel-based 888 Holdings won the bid for William Hill’s non-U.S. assets from Caesars, it agreed to purchase a company much larger than its own inventory. As a result, the deal must be approved by 888 shareholders. That vote occurs on May 16, according to iGaming Business.
A month ago, 888 and Caesars reduced the purchase price to acquire the assets by £250 million (US$315 million), with the cash portion of the deal now set at £584.9 million instead of £834.9 million.
Still, the deal made strategic sense for both businesses at the new purchase price, 888 said. The new empire to rise from the mashup would be the third largest publicly traded online gambling operator in the world. “The deal therefore represents a transformational opportunity for 888 to significantly increase its scale, further diversify and strengthen its product mix, and build leading positions across several of its key markets,” said the company in a statement.
For 888 this is a chance to widen exposure to sports betting, while also enhancing its position in locally regulated markets. It’s expansive scale can override marketing restrictions.
The business will also achieve cost synergies, including annual savings of £100 million by 2025 through a single platform, and duplicate costs.
The business made £1.24 billion in revenue in 2021, up by 7.3 percent from 2020 but still down by 14.7 percent from 2019.
Little more than half owes to U.K. online gaming, with £628.6 million, up 24.9 percent, thanks to £326.2 million in gaming revenue and £302.4 million betting revenue.
Retail revenue declined further amid continued Covid-19 lockdowns, as the retail division brought in £336.8 million, down 4.9 percent from 2020 and 53.0 percent from 2019.
