The head honcho of 888, along with the top strategy and finance executives, proclaimed the purchase of William Hill’s operations outside the United States a “monumental occasion” for the firm.
CEO Itai Pazner, accompanied by Chief Strategy Officer Vaughan Lewis and CFO Yariv Dafna, conducted a telephone meeting to delve into the ramifications of the latest acquisition on 888’s trajectory. This action follows 888’s agreement with Caesars Entertainment to secure the assets for £2.2 billion (US$3.03 billion).
The divestiture of William Hill’s European holdings was anticipated, as Caesars had declared its aim to shed them subsequent to its own procurement of William Hill in April 2021 for £2.9 billion. Although other entities like Tipico, Apollo Global Management, and Betfred expressed interest, 888 ultimately prevailed.
Pazner characterized the transaction as a “game-changing prospect” that will generate substantial worth for 888 stakeholders. He contends that the agreement will bestow upon 888 a “highly advantageous strategic foothold” within the market.
Lewis elaborated that the concept underpinning the deal was not novel to 888, remarking that “this merger has been a topic of discussion for numerous years,” and that he was “thrilled to participate in uniting these exceptional enterprises.”
The industry is buzzing about the robust strategic thinking driving this consolidation. The Chief Strategy Officer of 888 emphasized the possible advantages and crucial regions the unified entity will pursue.
This agreement isn’t merely about expansion; it’s about establishing a dominant force. We’re discussing a quintupled revenue stream! This amalgamation will propel us to a frontrunner position in significant regulated sectors such as the UK, Italy, and Spain.
This union has been in the works for some time, and the possibilities are vast. We’re not limiting ourselves to just a handful of markets either. Germany, Canada, the Netherlands, Romania, Denmark, and Ireland – these territories are primed for the taking, representing a collective worth of approximately $7.5 billion. We possess the necessary tools to ascend to a top-tier position in these markets as well.
And let’s not overlook the financial aspects. The £22 billion valuation, encompassing £1 billion in capitalized lease expenditures, effectively equates to a net expense of £20 billion.
The firm seeks to secure £1 billion in financing for the purchase, a sum the 888 financial chief characterized as “a highly favorable cost for a premium asset.”
Dafna also noted that the primary remaining obstacle is investor consent, with an official ballot scheduled for the initial quarter of 2022. He conveyed pleasure at the “robust backing received from stakeholders thus far” and stated the group intends to finalize the agreement within the first half of 2022.
Crucially for Pazner, the William Hill acquisition will not affect 888’s “promising initiatives in the US,” which revolve around its recent collaboration with the Sports Illustrated (SI) sportsbook, introduced earlier this week in Colorado.
“SI represents a powerful American brand possessing a vast and expanding customer base within the US,” Pazner remarked. “The alliance with the brand enables us to be considerably more selective and productive with our US investment, clearly concentrating on utilizing SI’s brand recognition and market position to acquire customers much more effectively and cultivate a lucrative enterprise over time.
“We are incredibly enthusiastic about the chance to enhance our US expansion strategies with even more in store, while the William Hill team contributes a wealth of supplementary sports wagering knowledge, encompassing their previous experience operating within the US.”
Pazner concluded the discussion by stressing: “This is an extremely appealing transaction for both 888 and William Hill International.”
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