888’s Strategic Acquisition of William Hill Assets Set for Q1 2022

The operator agreed in September to purchase the non-US business for £2.2bn (€2.6bn/$2.9bn), in a deal that will establish a global online betting and gaming leader. The acquisition will allow online-only 888 to expand into the retail channel for the first time by retaining the William Hill retail estate. 888 has successfully secured all mandatory anti-trust and gaming regulatory clearances as part of the acquisition process. However, completion of the deal is subject to certain remaining conditions, including the approval of 888’s shareholders. A meeting and subsequent vote by shareholders are scheduled for early next year. Shareholders will receive the necessary shareholder circular and prospectus in early 2022 to vote on the deal. To proceed, the re-admission of 888 ordinary shares to the premium listing segment of the UK’s Financial Conduct Authority and re-admission to trading on the main market for listed securities by the London Stock Exchange must be approved. Additionally, the William Hill group must be reorganised to separate the US and non-US businesses. If all these conditions are met, 888 anticipates completing the acquisition in Q1 of next year. The integration planning has progressed well with the appointment of Guy Cohen as senior vice president and director of integration. Cohen, previously senior vice president and head of B2C at 888, will collaborate with the senior team at William Hill to advance integration preparations prior to finalising the deal. Ahead of the acquisition, 888 plans to raise approximately £500m through issuing new equity in a capital raise. Itai Pazner, 888’s chief executive, stated that this transaction will create a top online betting and gaming group with superior scale, leading technology, increased diversification, and strong growth potential. Pazner also expressed excitement about leveraging the expertise and talent from both businesses to benefit the combined group. The acquisition of William Hill’s non-US assets is part of the strategy of Caesars Entertainment, which acquired the entire William Hill group in April 2021 for £2.9bn. Caesars’ intention was to acquire William Hill’s US business, with plans to sell the international division. Caesars initiated the selling process in May, aiming to find a buyer and complete the sale within one year.