888 Holdings has agreed to buy the non-US assets of William Hill from the Las Vegas-based Caesars Entertainment. The sale is estimated to be valued at just over $3 billion.
The acquisition is expected to be completed by the first half of next year, although the final green light needs to be given by regulators and shareholders.
The deal sees 888 Holdings acquire access to around 1,400 betting shops in the UK, as well as WillHill’s European business, which includes the online gambling platform, Mr. Green.
The non-US arm of William Hill employs around 12,000 people.
The CEO of 888, Itai Pazner said that deal was a “transformational and hugely excitement moment” in the group’s history.
“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,” he said.
Five months ago, Caesars Entertainment completed its multibillion dollar acquisition of William Hill, with the intention to sell off its UK/European side at the earliest possible date.
A number of entities showed interest in the non-US assets, including Apollo and CVC.
Analysts say that by acquiring these assets, 888 Holdings gets the chance to expand geographically, cross-sell products to a larger customer base and potentially see investors willing to value the business on a much higher multiple of earnings.