Zona de Azar UK – 888 to Sell its Bingo Businesses

UK.- December 17, 2021 www.zonadeazar.com 888 has reached an agreement to sell its entire B2C and B2B bingo businesses to Saphalata Holdings, a member of the Broadway Gaming group.

The consideration is $50m on a cash-free debt-free basis, including a potential earn-out of up to $4m, based on achievement over six months of revenue-based performance criteria.

Consideration will be paid in cash upon completion of the transaction, with the potential earn-out payable within approximately six months thereafter.

888 has agreed to provide Broadway certain transitional services for a period of up to 12 months from completion, in accordance with an agreed fee schedule.

888 has a clear 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.

As part of a strategic review, the group took the decision to sell the bingo business to improve its focus on its core platform, enabling greater resources to drive growth in its core markets and reducing compliance complexity arising from related accounts across B2B and B2C bingo and 888’s core platform.

The bingo business, which is delivered through a combination of B2B services under the Dragonfish brand and multiple leading B2C brands, is operated on a separate technology platform and primarily served by a designated operations team.

The transaction encompasses the entire bingo business of the group, including all its exclusive technology, assets, operations, B2B clientele and consumer-facing brands.

The acquisition will augment Broadway’s expansion strategy and enhance its already commanding position within the UK bingo market where significant opportunities exist.

Moving to acquire these businesses will give Broadway a strong foundation to scale the business thanks to the Dragonfish platform’s capabilities as well as its customer proposition.

Responsible gaming will continue to be a defining feature of Broadway’s operations and the acquisition will provide further customer protection capability.

Another core factor in the deal is welcoming aboard the highly experienced B2C and Dragonfish B2B bingo teams that will play a key role in accelerating Broadway’s progressive ambitions, that do not solely lie within the UK regulated market.

David Butler, CEO at Broadway Gaming, said: “We are delighted to reach an agreement with 888 to acquire its 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 have worked intensively with the 888 group over the course of the last few months and have been very impressed by the quality of the bingo platform and product, the B2C and B2B businesses, its approach to safer gambling and player protection and above all the management team.”

Edited by: @_fonta  www.zonadeazar.com