The head of 888, alongside the organization’s Chief Strategy Officer and Chief Financial Officer, characterized the agreement to purchase William Hill’s non-US holdings as a “momentous occasion.”
Itai Pazner, the CEO, joined by Vaughan Lewis, the Chief Strategy Officer, and Yariv Dafna, the CFO, conducted a conference call to elaborate on the implications of the recent acquisition for 888’s trajectory. They deemed it a “landmark day” for the enterprise.
Shortly before the call, 888 revealed it had finalized an agreement with Caesars Entertainment to acquire William Hill’s operations outside the United States for £2.2 billion ($3.03 billion). Caesars had purchased William Hill in April 2021 for £2.9 billion but swiftly indicated their intention to divest the European division of the UK bookmaking powerhouse. Tipico, Apollo Global Management, and Betfred were all rumored to be contenders, but the competition concluded today.
“We perceive the merger of 888 and William Hill as an ideal match that will generate substantial value for stakeholders,” Pazner remarked regarding the transaction.
“We’ve explored numerous prospects, and I genuinely believe this agreement will position 888 very advantageously in the market, and the financial gains are exceptionally appealing.”
Lewis highlighted that the rationale behind the deal wasn’t entirely novel for 888. “This union is something that has been deliberated for a considerable period, and it’s fantastic to be uniting two exceptional companies,” he stated.
The industry is abuzz with talk of the robust strategic planning driving this consolidation. A key executive at 888 emphasized the projected advantages and crucial regions. This agreement establishes a well-balanced income flow, effectively increasing their scale fivefold.
Their objective is to emerge as dominant forces in regulated sectors, specifically the UK, Italy, and Spain, where they will rank among the top three competitors. This union has been in the works for some time, and the enthusiasm is evident.
Beyond these major markets, they perceive substantial opportunities in six others – Germany, Canada, the Netherlands, Romania, Denmark, and Ireland – collectively representing approximately $7.5 billion in value. They are strategically positioned to secure a top-three position there as well.
From a financial standpoint, the transaction is estimated at £22 billion, but when considering factors like capitalized lease expenses, the actual cost is closer to £20 billion.
The firm is pursuing a substantial £10 billion investment to finalize the agreement for William Hill’s international holdings. 888’s financial chief didn’t hesitate to label it a “very appealing valuation for a premium property.”
Dafna, amplifying the enthusiasm, revealed that the investor decision is the last obstacle, anticipated in early 2022. He’s hopeful, citing the “robust backing received from stakeholders thus far.” The objective? Finalizing this purchase and commemorating by mid-2022.
Crucially for Pazner, this transaction won’t derail 888’s ambitious US growth strategy. They’re particularly enthusiastic about their new collaboration with Sports Illustrated (SI), which recently debuted in Colorado.
“SI is a legendary American name with a vast and devoted audience,” Pazner elaborated. “This alliance allows us to be tactical and productive with our US ventures. We’re utilizing SI’s brand strength to connect with the target demographic and cultivate a lucrative enterprise over time.”
He continued, “We’re eager to intensify our US expansion. We’re penetrating new territories, and the William Hill group contributes invaluable expertise, particularly from their own US endeavors.”
Pazner concluded the discussion with a clear message: “This is an exceptional agreement for both 888 and William Hill International.”