The Chief Executive, Head of Strategic Planning, and Chief Financial Officer of 888 are labeling the purchase of William Hill’s non-American holdings a “watershed moment” for the organization.
In a virtual meeting observed by Gambling Insider, 888 Holdings CEO Itai Pazner, alongside Chief Strategy Officer Vaughan Lewis and CFO Yariv Dafna, detailed how the latest acquisition will mold 888’s trajectory. The discussion followed soon after 888 revealed it had secured an agreement with Caesars Entertainment to procure the assets for £2.2 billion ($3.03 billion). Caesars had obtained William Hill in April 2021 for £2.9 billion but swiftly declared it would be divesting the European branch of the UK bookmaking powerhouse. Numerous firms, including Tipico, Apollo Global Management, and Betfred, were supposedly keen, but the arrangement with 888 concludes the bidding process.
“We are confident the merger of 888 and William Hill is an ideal pairing, establishing a genuinely worldwide betting and gaming force,” Pazner stated regarding the transaction.
He continued: “We explored numerous prospects, and I genuinely think this is the one that positions 888 very advantageously in the market with extremely appealing financial gains.”
Lewis reiterated this feeling, highlighting that the reasoning behind the agreement was not a novel idea for 888. “This union is something that has been deliberated for a long time,” he expressed, “and it’s fantastic to be involved in uniting these exceptional enterprises.”
The fervor surrounding this business combination is entirely justified – the strategic rationale is incredibly sound. 888’s head of strategy emphasized the projected advantages and crucial regions the unified entity will pursue. This amalgamation isn’t merely about expanding in size, it’s about establishing a genuinely varied income stream, with forecasts suggesting a possible quadrupling of revenue.
Geographically, the consolidation aims to propel the firm to a dominant position in key regulated territories. The UK, Italy, and Spain are anticipated to be bastions, with the combined organization likely securing a top-three market position in each.
This agreement has been in the works for quite some time, with discussions circulating for years. The enthusiasm is tangible, and with good reason – the strategic alignment is indisputable.
Beyond the initial objectives, six supplementary markets – Germany, Canada, the Netherlands, Romania, Denmark, and Ireland – present a combined \$7.5 billion prospect ready for the taking. The merged enterprise is assured in its capacity to become a leading power in these markets as well.
From a financial standpoint, the transaction is appraised at £2.2 billion, with £100 million ascribed to capitalized lease expenses, resulting in a net value of £2 billion.
The firm requires a capital influx of £10 billion. This sum signifies an “exceptional valuation for a premium asset,” as per the statement from 888’s Chief Financial Officer. He further noted that obtaining consent from stakeholders is the primary prerequisite for the purchase to proceed, with an official ballot anticipated within the initial quarter of 2022. He expressed satisfaction with the “robust backing received from shareholders thus far” and indicated that the conglomerate aims to finalize the acquisition by the first half of 2022.
A pivotal aspect for Pazner is the assurance that the William Hill transaction will not impede 888’s “promising endeavors in the US market.” These initiatives center around a recently established collaboration with Sports Illustrated (SI) Sportsbook, which commenced operations in Colorado earlier this week.
“SI possesses an incredibly powerful brand presence within the US, boasting a substantial and expanding customer base,” Pazner remarked. “Joining forces with them enables us to penetrate the US market in a more calculated and productive manner, with a distinct emphasis on harnessing the influence and scope of the SI brand to acquire customers economically and cultivate a lucrative enterprise over time.
“We are highly enthusiastic about the prospect of amplifying our US expansion strategies, which will involve entering additional states as we progress, while simultaneously integrating a wealth of supplementary sports wagering proficiency from the William Hill team, encompassing their US insights gained from their prior ventures.”
Concluding the conference, Pazner underscored that “this represents an exceptionally attractive transaction for both 888 and William Hill International.”
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