888 Finalizes Bingo Assets Sale to Division of Broadway Gaming Group
Published July 12, 2022 by Brett C
The deal was a long time in the making, but 888 Holdings plc has announced the finalization of the sale of all bingo assets to a division of the Broadway Gaming Group.
Leading global gaming giant 888 Holdings plc broke the news of selling all company bingo assets – business to business (B2B) and business to consumer (B2C) – to Saphalata Holdings, part of the Broadway Gaming Group.
Dealmakers estimated the initial value of the sale at €44.6 million/£37.7 million/$45.3 million in cash. This amount is payable upon finalization of the deal, with an additional $2 million unconditionally payable in a year. This was presented as part of the deal agreed upon in December 2020 between 888 Holdings plc and Broadway Gaming Group.
888 Holdings plc will continue providing a wide range of transitional services to Broadway Gaming Group for 12 months after the deal's completion. The bingo business is primarily based in the United Kingdom, with GGR (gross gambling revenue) in Q1 + Q2 of 2022 totalling $25 million. Over the past 12 months, bingo GGR amounted to $54 million.
888 Holdings plc believes that the divestiture from bingo will allow the company to focus on developing and expanding multiple leading positions across regulated markets worldwide. In addition, 888 will employ its extensive marketing expertise, top-tier brands, and wide-ranging leadership across many different products across markets.
The chief executive officer (CEO) of 888, Itai Pazner, was well pleased with the sale of bingo assets to Saphalata Holdings,
'I'd like to express my deep gratitude to the entire bingo team over the years. You guys have put in a lot of hard work. We applaud your commitment to the business since we announced the sale of B2C and B2B bingo operations. As a partner in the bingo industry, I'm confident that bingo will continue to prosper, and we wish the team well in their endeavours.'
He added,
'Now that this transaction has been successfully concluded, it will allow us at 888 Holdings plc to focus on fully integrating with the William Hill brand, to deliver on our mission to become a world-leading gaming and online betting business.'
David Butler, the chief executive officer of Broadway Gaming, chimed in,
'We are thrilled to complete the acquisition of 888s high-quality bingo businesses and gaming platforms. As a result, we can successfully combine our current brands such as Butler's Bingo and our other businesses with those acquired through 888 Holdings plc to stamp our footprint across multiple regulated markets.'
He added,
'There are plenty of expansion opportunities in the business-to-business and business-to-consumer segments. We are excited about working with management teams to deliver on these strategic plans. Our objective is to become the world's leading online bingo business.'
888 Holdings plc completed the acquisition of William Hill
News of the finalization of the scale of 888's bingo assets comes hot on the heels of the recent acquisition of William Hill (non-US assets) from Caesars. Parties brokered that deal for £1.95 billion. In September 2021, 888 agreed to acquire William Hill's non-US business. This was announced after Caesars the US-based operator closed the deal for all William Hill businesses for £2.90 billion. Caesars was intent on selling all of William Hill's businesses except its US-based assets.
The original purchase price for that deal amounted to £2.2 billion. However, Caesars and 888 agreed to drop the price to acquire the assets by some £250 million. Stakeholders decided on the cash portion of the deal at £584.9 million rather than £834.9 million. Now, the UK and Ireland-based bingo businesses owned by 888 Holdings plc will be transferred to Saphalata Holdings, a division of the Broadway Gaming Group.
