9th Sep 2021 09:26
(Alliance News) - 888 Holdings PLC on Thursday confirmed it has struck a deal with Caesars Entertainment Inc to buy William Hill's assets outside of the US for GBP2.2 billion.
The Gibraltar-based online gaming firm called the reverse takeover a "transformational opportunity" for it to increase its scale, product offering and revenue. It noted William Hill has over 1,400 betting shops across the UK and around 2 million active UK online customers.
The news comes two days after 888 confirmed it was in talks with Caesars.
Under the deal, the FTSE 250 constituent hopes to ultimately draw annual pretax cost synergies of at least GBP100 million per year. It currently expects to cumulatively achieve around GBP10 million of these synergies in 2022, GBP54 million in 2023, GBP69 million in 2024, and GBP100 million in 2025.
"The acquisition of William Hill International is a transformational and hugely exciting moment in 888's history," said 888 Chief Executive Itai Pazner.
"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."
William Hill International is a retail and online betting brand with a core scope in Europe. The former London listing was bought by Caesars in a deal that completed in April.
888 is planning a GBP500 million share placing in the near future to help fund the buy, which it will launch at an "appropriate time".
Shares in 888 were down 1.0% to 398.00 pence each in London on Thursday morning, giving it a market capitalisation of GBP1.48 billion.
The acquisition is classed as a reverse takeover, and thus needs approval from 888 shareholders.
By Josie O'Brien; [email protected]
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