888 to sell all bingo operations including Dragonfish in £38m deal
Gambling firm 888 Holdings has announced that it is to sell its online bingo operations in a deal worth US$50m.
The deal announced today will see all of 888’s bingo brands, as well as its Dragonfish bingo software, acquired by Saphalata Holdings, a company that is part of UK bingo giant Broadway Gaming Ltd.
888 came to the decision to sell its bingo operations as part of a strategic review and will now be focusing on core platforms like its online casino and sportsbook brands, as well as on further developing technology and developing a general growth strategy focused on the US market.
The deal is debt- and cash-free, meaning a smooth transaction for both parties and potential earnout of $4m for the buyer.
To facilitate the deal, 888 has agreed to provide some transitional services to Broadway over the next 12 months.
The leadership teams at 888 and Broadway were enthusiastic about the agreement’s prospects for both of their companies. Commenting on the news, 888 CEO Itai Pazner said: “This strategic transformation will enable 888 to further increase its focus on its core platform, unified, scalable and proprietary technology.
“The high-quality bingo business has been an important part of 888’s history, and over many years we have developed an advanced B2B offering alongside a suite of popular consumer-facing brands. As part of an enlarged business, I am very confident that the future for the bingo business is bright. I would like to express my immense gratitude for all of the hard work of the team over the years.”
Broadway CEO David Butler said: “We are delighted to reach an agreement with 888 to acquire its bingo business and platform. By combining these with our existing businesses and brands, which include ‘Butlers Bingo’, we will be able to achieve an even stronger global footprint in key regulated bingo markets.”
Depending on the successful restructuring of the bingo business and approval from the Gambling Commission, the takeover should be completed in the second quarter of 2022.
The sale comes three months after 888 agreed a deal to acquire sportsbook brand William Hill.