As reported by The Times, the prominent online wagering firm 888 Holdings has emerged victorious in the contest to purchase William Hill’s continental business. 888’s successful offer exceeded £2 billion (equivalent to $2.76 billion), surpassing competing proposals, most significantly from the private equity group Apollo Global Management.
The situation originated when Caesars Entertainment acquired William Hill for a substantial £2.9 billion, marking one of the largest transactions the gaming sector had witnessed. Nevertheless, Caesars promptly opted to divest William Hill’s European divisions, which they perceived as less lucrative.
Initially, projections estimated the sale of William Hill’s European branch at approximately £1.5 billion. However, the situation escalated rapidly as numerous global contenders in the sports wagering and internet casino realm entered the fray.
Earlier this year, rumors circulated that Tipico, a German betting powerhouse, was also in contention. Other prominent entities like Apollo Global Management and Betfred were also expressing interest.
For a period, it was a three-way competition between Apollo, 888, and a joint proposal from CVC Capital Partners and Tipico, particularly after another contender, Advent International, withdrew.
While Apollo was considered the leading candidate for a while, and CVC possessed the advantage of familiarity with William Hill from prior ownership, ultimately, it was 888 that prevailed over Apollo in the final one-on-one showdown.
Despite 888 Holdings and William Hill staying mum about their latest agreement last week, 888’s chief executive, Itai Pazner, alluded to their future endeavors. He indicated that 888 possesses a robust foundation for growth, citing a strong financial standing and a thriving internal expansion plan. This implies that 888 is poised to capitalize on prospects, potentially encompassing the assimilation of William Hill’s holdings.
Although the destiny of William Hill’s wagering establishments remains uncertain, 888’s prior suggestions of retaining a physical footprint imply they could preserve a portion of these brick-and-mortar sites.
