888 has completed the sale of its B2C and B2B bingo businesses to Saphalata Holdings Ltd., a member of the Broadway Gaming group.
The total cash consideration of $45.25m (£37.4m) is payable on completion, and a further $2m unconditionally payable in one year. 888 has agreed to continue to provide Broadway certain transitional services for a period of up to 12 months from completion, in accordance with an agreed fee schedule.
888 said the completion of the transaction will enable the operator ‘to improve focus on delivering against our strategy to be a global leader in online betting and gaming, by building market-leading positions in attractive regulated markets, driven by proprietary technology, product leadership, leading brands, and marketing expertise’.
Itai Pazner, CEO of 888, commented: “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 integraton with William Hill and delivering on our mission to be one of the world’s leading online betting and gaming businesses.”
The bingo business, which is substantially UK-based, generated gaming revenue of approximately $25m (£19m) in H1 2022, and approximately $54m (£41m) in the last twelve months.
David Butler, CEO of Broadway Gaming, added: “We are delighted to complete the acquisition of 888’s high quality bingo business and platform. By combining these with our existing business and brands, which include ‘Butlers Bingo’, we will be able to achieve an even stronger global footprint in key regulated bingo markets.
We see further expansion opportunities in both the B2C and B2B segments, and are very excited about working with the management team to deliver on our plans for the future, as we look to become the pre-eminent online bingo business globally.”