888 has completed the sale of its Latvian business to Paf Consulting Abp.
Last month, 888 noted that the group’s Latvian businesses, which use the William Hill and Mr Green branding and their licences, would be sold to Paf for €28.25m.
The transaction breaks down into an initial consideration of €24m to be paid in cash upon completion, and a further potential earn-out of up to €4.25m due next year upon completion of the 2023 audited financials.
The sale is expected to have zero impact on ongoing 888 operations, as the group stated the sale is consistent with the company’s strategy to focus on core and growth markets.
In 2022, 888’s Latvian business produced £9.1m in net revenue and £2.5m in EBITDA. The value of the gross assets subject to the transaction, as set out in a December 31, 2022, balance sheet, was approximately £9.3m.
Following the completion of the sale to Paf, Lord Mendelsohn, Executive Chair of 888, commented: “The sale of the Latvian business marks another positive step in the execution of our integration programme.
“This sale generates cash proceeds from a non-core market to support our deleveraging plans, as well as enabling reinvestment into our core and growth markets.”
Paf’s position in the Latvian gaming market has now grown, as the transaction makes the firm the third-largest gaming company in the country.
Christer Fahlstedt, CEO of Paf, said regarding the initial transaction announcement: “We are thrilled to get the opportunity to continue to build on a great Latvian success story.
“With a long-term perspective, we are convinced that the Latvian market is moving in the direction of increased player protection and thereby a great strategic fit for Paf.”