888 Accepts Purchase William Hill European Business
9 September 2021
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888 Holdings has agreed to purchase William Hill's European service from its US owner in an offer worth ₤ 2.2 bn.
The online betting firm stated the deal with casino huge Caesars Entertainment would include William Hill's 1,400 UK betting stores.
888 president Itai Panzer stated the acquisition would "develop one of the world's leading online betting and video gaming groups".
The deal is set to develop a combined group with more than 12,000 .
It will go for cost savings of about ₤ 100m a year as a result of the purchase.
888 stated the acquisition would provide it "considerably improved exposure to sports betting, the world's biggest and fastest growing online sector, with the addition of an iconic sports brand name".
It likewise said William Hill's High Street presence was a crucial factor behind the move.
Mr Panzer added: "Our strategies are also complementary, being digitally led, customer focused, and dedicated to player defense and raising industry requirements around more secure betting.
"We are likewise excited about the opportunities that the retail organization provides and see substantial brand name benefits."
William Hill chief executive Ulrik Bengtsson stated: "The William Hill and 888 methods are highly complementary with an outright focus on the item and consumer experience.
"Scale is increasingly essential in our sector and the mix of business will provide an effective alignment of brand names and technology."
An auction for the non-US side of William Hill's organization, which consists of online operations across the UK and Europe, was started by Caesars Entertainment after it had gotten the betting giant in April for ₤ 2.9 bn.
The Caesars Palace gambling establishment owner only wanted the firm's US operations and stated from the beginning that it meant to offer other parts of business once the offer had actually gone through, triggering a race to buy.
Tom Reeg, chief executive of Caesars Entertainment, said that he was "delighted" the company had "found an owner for the William Hill organization outside the US which shares the exact same objectives, techniques and longer-term aspirations of that service".
US private equity firm Apollo was also in the running for the purchase of the European company.
888's takeover is still subject to shareholder approval, and it will also need to be offered the consent by the Financial Conduct Authority.
Lord Jon Mendelsohn, chair of 888, said: "Our company believe the acquisition will develop considerable worth for investors, developing a combined service with leading technology, products and brands throughout sports wagering, video gaming and poker, supported by top-notch management skill from both companies."
Founded in 1934, the William Hill brand name began when its founder set up a postal and phone-based wagering business.
It opened its first wagering stores in the UK in the mid-1960s, quickly after their presence on High Streets was made legal.
Questions had been raised about the worth of the brand's bricks-and-mortar shops, which were mostly closed during the pandemic.
In August in 2015, the company stated it would not be reopening 119 of its wagering shops after coronavirus lockdowns, stating it did not anticipate customers to return in the numbers seen before the pandemic.