Online betting and gaming company 888 Holdings announced Thursday that it has completed a previously announced sale of its entire B2C and B2B bingo businesses to Broadway Gaming Group’s Saphalata Holdings.
The total cash consideration of $45.25 million is $43.25 million payable on completion, and a further $2 million unconditionally payable in one year. 888 has agreed to continue to provide Broadway with certain transitional services for a period of up to 12 months from completion, in accordance with an agreed fee schedule.
In a press release, the company explained that the completion of the transaction will "enable us to improve focus on delivering against our strategy to be a global leader in online betting and gaming, by building market-leading positions in attractive regulated markets, driven by proprietary technology, product leadership, leading brands, and marketing expertise."
Itai Pazner, CEO of 888, commented: "I would like to express my immense gratitude for all of the hard work of the bingo team over the years and in particular their unwavering commitment to the business since we announced the transaction. As part of a dedicated bingo operator, I am very confident in the future prospects of the bingo business and wish the team well."
"The successful completion of this strategic transaction enables 888 to further increase its focus on integration with William Hill and delivering on our mission to be one of the world's leading online betting and gaming businesses," he added.
Itai Pazner, CEO of 888
David Butler, CEO of Broadway Gaming, added: "We are delighted to complete the acquisition of 888's high-quality bingo business and platform. By combining these with our existing business and brands, which include 'Butlers Bingo', we will be able to achieve an even stronger global footprint in key regulated bingo markets."
"We see further expansion opportunities in both the B2C and B2B segments, and are very excited about working with the management team to deliver on our plans for the future, as we look to become the pre-eminent online bingo business globally," Butler concluded.
The bingo business, which is substantially UK-based, generated gaming revenue of approximately $25 million in H1 2022, and approximately $54 million in the last twelve months. By acquiring the business, Broadway Group will integrate 888’s Dragonfish B2B holding, and multiple B2C operators, including its technology, assets, operations, clientele and consumer-facing brands.
888 made the decision to sell its bingo divisions following a review in which the LSE-registered gambling group concluded to improve focus on its core platform, drive revenue into “core markets” such as the US and eliminate a complex compliance situation due to related accounts across the B2C, B2B and core platforms.
888 Holdings, which already owned SI Sportsbook and Mr Green, last week completed the acquisition of the international, non-US assets of William Hill from Caesars, and confirmed current CEO Itai Pazner in the same role.