The sale of 888's Latvian business to Paf Consulting has been completed successfully.Published June 20, 2023 by OCR Editor
The sale of 888's Latvian business to Paf Consulting has been successfully concluded, which marks a major milestone for the company's integration program. This sale has generated cash proceeds and has allowed 888 to concentrate on its main markets while also supporting its deleveraging plans. Find out more about this strategic decision and how it will impact 888's future growth.
As reported earlier this month by iGB News, 888 has completed the sale of its Latvian business to Paf Consulting, just weeks after reaching an agreement to divest the assets. The deal, announced in May, involved the sale of the business to Paf for up to €28.3m, with an initial cash payment of €24.0m upon completion and an additional €4.3m to be paid in 2024 after the 2023 audited financials are concluded.
The Latvian business, which operates under 888's William Hill and Mr Green brands with a local license, will continue to use these brands within Latvia for a limited period under a brand license provided by 888. While 888 owns 90% of the entity, the business operates independently, with its own management team and technology platform.
Lord Mendelsohn, executive chair of 888, commented, "The sale of the Latvian business marks another positive step in the execution of our integration program. This transaction generates cash proceeds from a non-core market to support our deleveraging plans and enables reinvestment into our core and growth markets."
In another development, FS Group, an investment vehicle backed by former GVC chief executive Kenny Alexander, recently acquired a 6.57% stake in 888. FS Group purchased a 4.55% holding in the group, and Shay Segev, Alexander's successor, transferred the remaining 2.02%, before GVC changed its name to Entain. The investment represents a total of 9,063,313 888 ordinary shares.
These developments come amidst changes within 888, including the departure of Itai Pazner as chief executive in January 2023. Lord Mendelsohn serves as interim executive chair while the search for a permanent replacement continues.
Completing the acquisition of William Hill's non-US assets from Caesars in July 2022 positioned 888 for growth, despite taking on significant debt. In the 2022 financial year, 888 achieved a 74% increase in revenue and an 82% rise in adjusted EBITDA, performing in line with expectations.
About 888 Holdings
888 Holdings is a leading global provider of online gaming entertainment, operating across multiple markets and jurisdictions. With a diverse portfolio of casino games, poker, sports betting, and bingo, 888 offers players a comprehensive and immersive gaming experience worldwide. The company is known for its innovative technology, exceptional customer service, and responsible gaming practices. 888's commitment to delivering quality and engaging content has established it as a trusted and respected brand in the industry, positioning it for continued success and growth.