888 Accepts Purchase William Hill European Business

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


The online betting firm stated the handle gambling establishment huge Caesars Entertainment would include William Hill's 1,400 UK betting stores.


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


The offer 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 an outcome of the purchase.


888 said the acquisition would provide it "considerably boosted exposure to sports betting, the world's largest and fastest growing online sector, with the addition of a renowned sports brand".


It also said William Hill's High Street presence was a crucial element behind the relocation.


Mr Panzer added: "Our methods are also complementary, being digitally led, customer focused, and dedicated to player protection and raising market standards around safer betting.


"We are also thrilled about the chances that the retail organization supplies and see significant brand name advantages."


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


"Scale is increasingly crucial in our sector and the combination of the companies will offer an effective positioning of brands and innovation."


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


The Caesars Palace casino owner just desired the company's US operations and said from the outset that it intended to offer other parts of the service once the deal had actually gone through, sparking a race to buy.


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


US private equity company Apollo was also in the running for the purchase of the European service.


888's takeover is still subject to investor approval, and it will also require to be offered the go-ahead by the Financial Conduct Authority.


Lord Jon Mendelsohn, chair of 888, said: "We believe the acquisition will develop significant value for shareholders, developing a combined company with leading technology, items and brand names across sports betting, video gaming and poker, supported by premium management talent from both services."


Founded in 1934, the William Hill brand name began when its founder set up a postal and phone-based betting business.


It opened its first wagering shops in the UK in the mid-1960s, shortly after their presence on High Streets was made legal.


Questions had been raised about the value of the brand's bricks-and-mortar stores, which were mostly closed during the pandemic.


In August last year, the business said it would not be reopening 119 of its wagering shops after coronavirus lockdowns, saying it did not anticipate consumers to return in the numbers seen before the pandemic.