888 Agrees To Buy William Hill European Business

9 September 2021
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888 Holdings has agreed to buy William Hill's European company from its US owner in a deal worth ₤ 2.2 bn.


The online gaming company said the handle casino giant Caesars Entertainment would consist of William Hill's 1,400 UK wagering shops.


888 president Itai Panzer said the acquisition would "produce among the world's leading online wagering and video gaming groups".


The deal is set to develop a combined group with more than 12,000 workers.


It will aim for cost savings of about ₤ 100m a year as a result of the purchase.


888 stated the acquisition would give it "significantly enhanced exposure to sports wagering, the world's biggest and fastest growing online segment, with the addition of an iconic sports brand name".


It also said William Hill's High Street presence was an important factor behind the move.


Mr Panzer added: "Our techniques are also complementary, being digitally led, consumer focused, and dedicated to player protection and raising industry requirements around much safer gambling.


"We are likewise delighted about the chances that the retail business supplies and see significant brand benefits."


William Hill chief executive Ulrik Bengtsson said: "The William Hill and 888 techniques are extremely complementary with an absolute concentrate on the item and customer experience.


"Scale is significantly crucial in our sector and the combination of business will provide a powerful alignment of brands and technology."


An auction for the non-US side of William Hill's organization, that includes online operations throughout the UK and Europe, was started by Caesars Entertainment after it had actually acquired the betting giant in April for ₤ 2.9 bn.


The Caesars Palace gambling establishment owner only wanted the company's US operations and said from the start that it meant to offer other parts of the business once the deal had actually gone through, stimulating a race to buy.


Tom Reeg, primary executive of Caesars Entertainment, said that he was "thrilled" the company had actually "found an owner for the William Hill company outside the US which shares the very same goals, techniques and longer-term ambitions of that company".


US private equity firm Apollo was likewise in the running for the purchase of the European company.


888's takeover is still subject to investor approval, and it will likewise need to be provided the consent by the Financial Conduct Authority.


Mendelsohn, chair of 888, said: "Our company believe the acquisition will create substantial worth for shareholders, producing a combined service with leading technology, products and brand names throughout sports betting, gaming and poker, supported by top quality management talent from both businesses."


Founded in 1934, the William Hill brand started out when its founder established a postal and phone-based betting business.


It opened its first wagering stores in the UK in the mid-1960s, soon after their existence on High Streets was made legal.


Questions had actually been raised about the value of the brand's bricks-and-mortar shops, which were mainly closed throughout the pandemic.


In August last year, the business said it would not be reopening 119 of its wagering stores after coronavirus lockdowns, stating it did not expect clients to return in the numbers seen before the pandemic.