888 has completed the divestment of its entire B2C and B2B bingo businesses to Saphalata Holdings, a member of the Broadway Gaming group.
The transaction, which was initially detailed in December 2021, is for a total cash consideration of $45.25m (£37.4m), with $43.25m payable on completion and a further $2m unconditionally due in one year.
The business, which is substantially UK-based, generated gaming revenue of approximately $25m (£19m) in H1 2022, and an estimated $54m (£41m) during the last twelve months.
David Butler, CEO of Broadway Gaming, explained: “We are delighted to complete the acquisition of 888’s high quality 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 see further expansion opportunities in both the B2C and B2B segments, and are very excited about working with the management team to deliver on our plans for the future, as we look to become the preeminent online bingo business globally.”
Following the sale, the gambling group is to maintain the provision of certain transitional services to Broadway for a period of up to 12 months from completion, in accordance with an agreed fee schedule.
The divestment, said 888, would enable the company to “improve focus” on delivering against its ambitions across the global online betting and gaming ecosystem.
“I would like to express my immense gratitude for all of the hard work of the bingo team over the years, and in particular their unwavering commitment to the business since we announced the transaction,” commented Itai Pazner, CEO of 888.
“As part of a dedicated bingo operator, I am very confident in the future prospects of the bingo business and wish the team well.
“The successful completion of this strategic transaction enables 888 to further increase its focus on integration with William Hill and delivering on our mission to be one of the world’s leading online betting and gaming businesses.”