888 Holdings plc has said it expects its acquisition of William Hill’s non-US assets to be completed by the end of Q2 of this year.
The agreement to buy William Hill from Caesars Entertainment was first announced in September 2021 and is seen as a major statement of intent from 888, which, up until now, has been an online-only business.
As part of the deal, the operator will take control of more than 1,400 brick-and-mortar betting shops currently operated by William Hill throughout the UK. 888 said this “represents a transformational opportunity for 888 to significantly increase its scale, further diversify its product mix and accelerate the upward shift of its revenue growth profile.”
The sale of William Hill naturally generated a lot of interest and 888 only prevailed after an intense bidding war — seeing off the likes of Apollo Capital Management and CVC Capital Partners.
“William Hill is an iconic sports brand, making it the ideal complement to 888, one of the leading global online gaming brands,” 888 CEO Itai Pazner said, at the time the deal was announced in September. “Our strategies are also complementary, being digitally-led, customer-focused, and committed to player protection and raising industry standards around safer gambling.
“We are also excited about the opportunities that the retail business provides and see significant brand benefits to [an 888-William Hill combination] from its large estate.”
A Pause in Proceedings
The deal, in the region of $3 million, was originally expected to have been completed in the first quarter of this year, but 888 recently announced a slight delay on the proposed date.
The company said it wanted to raise an additional $676 million and take a shareholder vote before concluding the acquisition.
888 Holdings has reportedly already received all mandatory antitrust and gaming regulatory clearances.
888 Says Bye-Bye to Bingo
In addition to the purchase of William Hill, 888 Holdings is also selling off its B2C and B2B Bingo businesses.
Saphalata Holdings has agreed to purchase the operations, pending its receipt of a license from the UK Gambling Commission. The deal is for $50 million, with a potential $4 million earnout, depending on “revenue-based performance criteria.” That deal is also expected to be completed in Q2.
Caesars’ agreement with 888 came less than five months after it acquired the business for $4 million.
A sale was not unexpected. Caesars disclosed in August that it intended to sell its non-US William Hill assets. It also said it would rebrand its William Hill sportsbook as Caesars Sportsbook in eight states.
Pazner clearly sees the deal as a watershed moment for 888. “The acquisition of William Hill International is a transformational and hugely exciting moment in 888’s history,” he said in September.
“This transaction will create one of the world’s leading online betting and gaming groups with superior scale, exceptional brands, increased diversification, and a platform for strong growth.”
888 has a firm foothold in the industry with the addition of 888’s sportsbook brand and 888 online poker, among others.
