888 Completes Sale of Bingo Business
Saphalata Holdings Ltd., a member of the Broadway Gaming Group, has completed the acquisition of 888’s entire B2C and B2B bingo business.
888’s bingo business was sold for a total cash consideration of $45.25 million, of which $43.25 was payable on completion and the remaining $2 million is unconditionally payable in a year’s time. As part of the deal, 888 will be providing Broadway Gaming with a number of transitional services for up to 12 months from completion.
888 says that the sale will allow it to increase its focus on online betting and gaming in line with its strategy of being a global leader. The bingo business, which is primarily based in the UK, brought in gaming revenue of roughly $25 million in the first half of this year and approximately $54 million over the past twelve months.
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.
David Butler, the CEO of Broadway Gaming, said that they are “delighted” with the acquisition. He explained that by combining 888’s bingo business with its own brands, such as Butlers Bingo, they would be able to increase their global footprint in key regulated markets. He believes that there is the chance to expand further in both the B2C and B2B segments and said that they are “very excited” about working with 888’s management team to realise their future plans, the result of which will make them “the pre-eminent online bingo business globally.”