888 pays £2.2bn for William Hill’s non-US assets including UK betting shops
William Hill’s American owner has revealed that online gambling operator 888 has agreed to pay £2.2bn to buy the brand’s non-US business, including its 1,400+ UK betting shops.
Caesars Entertainment, which bought William Hill last year for £2.9bn. had placed the international business up for auction and 888 had announced “advanced discussions” on Tuesday after it was reported to have won the day.
888 Holdings said the acquisition would create a “global online betting and gaming leader” and deliver enhanced sports betting opportunities.
William Hill has more than 1,400 betting shops in the UK and two million active online users
“The combination of 888 and WHI (William Hill International) is expected to deliver significant operating efficiencies, including pre-tax cost synergies of at least £100m per year, leading to improved profit margins,” its statement said.
Chief executive Itai Pazner later signalled that no UK high street jobs would be placed at risk under that forecast, as he said the betting shop operation was “profitable” following an earlier transformation of the estate, adding: “Our plans are absolutely to keep the shops”.
There had been a question mark hanging over the stores which had endured headwinds from COVID disruption and past regulatory action against fixed-odds betting terminals.
William Hill employs 12,000 people across its international business, including 8,000 of them in the UK.
888 added that it would raise about £500m by issuing new equity via a capital raise to help bolster its finance structure after the deal which, it said, was dependent on several hurdles including investor and regulatory clearances.
Caesars had bought William Hill outright as the United States betting market opens up following the lifting of historic curbs on sports betting operations.
Legal betting on sports is spreading across the United States
Tom Reeg, Caesar’s chief executive, said: “We have found an owner for the William Hill business outside the US which shares the same objectives, approaches and longer-term ambitions of that business”.
Mr Pazner, added: “This transaction will create one of the world’s leading online betting and gaming groups with superior scale, exceptional brands, increased diversification, and a platform for strong growth.
“William Hill is an iconic sports brand, making it the ideal complement to 888, one of the leading global online gaming brands.
“Our strategies are also complementary, being digitally led, customer focused, and committed to player protection and raising industry standards around safer gambling.
“We are also excited about the opportunities that the Retail (betting shop) business provides and see significant brand benefits to the enlarged group from its large estate.”
Shares were more than 3% down on the news – perhaps reflecting the price paid as it had been expected the auction could realise proceeds above £1.5bn for Caesars.