The head of 888, Itai Pazner, joined by Chief Strategy Officer, Vaughan Lewis, and CFO, Yariv Dafna, hosted a call to discuss the massive effect of their latest purchase of William Hill’s operations outside the US. Pazner celebrated it as a “landmark day” for the business.
News of the £2.2 billion (roughly $3 billion) agreement with Caesars Entertainment broke mere hours before the call. Caesars had secured William Hill in April 2021 for £2.9 billion but swiftly moved to divest the European portion of the UK bookmaking powerhouse. This sparked a bidding frenzy, with Tipico, Apollo Global Management, and Betfred all competing for the prize. In the end, 888 emerged triumphant.
Pazner conveyed immense excitement about the deal, stating, “The union of 888 and William Hill is an ideal pairing, generating substantial value for our investors.” He stressed the comprehensive due diligence performed, highlighting the strategic edge and attractive financial gains this acquisition presents.
Mirroring this feeling, Lewis noted that the concept had been circulating for some time, saying, “This merger has been discussed numerous times over time, and it’s fantastic to be part of bringing these exceptional companies together.”
The fusion of 888 and William Hill has generated considerable enthusiasm, and with good cause. The strategic thinking underpinning the move is highly persuasive.
888’s head of strategy emphasized the possibilities presented by the unified entity’s income channels and the primary regions they intend to pursue. This agreement establishes a highly varied revenue composition – in reality, it is projected to multiply revenue by a factor of five.
Moreover, this amalgamation substantially bolsters the group’s standing in crucial regulated sectors. The consolidated company will rank among the top three contenders in the United Kingdom, Italy, and Spain. This merger has been anticipated for some time, and it is thrilling to witness these two industry giants finally uniting.
Apart from the initial expansion in those three markets, six additional regions – Germany, Canada, the Netherlands, Romania, Denmark, and Ireland – hold immense promise, collectively representing approximately $7.5 billion. The merged company is well-situated to emerge as a dominant force in these markets as well.
From a financial standpoint, the transaction is appraised at £2.2 billion, encompassing £100 million in capitalized lease expenses, resulting in an actual transaction value of £2 billion.
The firm must secure £1 billion in funding to finalize the purchase of William Hill’s assets outside the United States. The CFO of 888 remarked that this sum constitutes an “attractive offer for a top-tier property.”
A significant obstacle persists: obtaining the green light from stakeholders. This pivotal ballot is scheduled for the initial quarter of 2022. Despite this, there’s a sense of hopefulness. Preliminary signs point towards “robust backing from shareholders,” potentially clearing the path for a takeover by mid-2022.
Crucially, this acquisition will not disrupt 888’s ambitious expansion strategy for the US market. These aspirations rely on a recently established collaboration with Sports Illustrated (SI) sportsbook, which debuted in Colorado.
“SI is a dominant brand within the US, boasting a vast and loyal audience,” elaborated 888’s chief executive. This alliance facilitates a highly targeted and calculated US investment, capitalizing on SI’s brand awareness and scope to efficiently onboard customers and cultivate a lucrative enterprise over time.
He continued, “We are incredibly enthusiastic about the prospect of accelerating our US growth trajectory, penetrating additional states while welcoming the wealth of sports wagering expertise that the William Hill team contributes, including their prior US involvement.”
The call concluded optimistically, with the CEO stressing, “This is an extremely attractive transaction for both 888 and William Hill International.”
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