888 to sell bingo business to Broadway Gaming for $54m

Online betting and gaming business 888 has agreed to sell its B2C and B2B bingo business to Saphalata Holdings Ltd, a division of Broadway Gaming Group, in a deal worth up to $54m (£40.7m/€47.9m)

The bingo business operates on a combination of B2B services under 888’s Dragonfish brand and several B2C brands.

888 made the decision to sell the bingo business to focus on its core casino and betting offerings after it agreed to acquire William Hill’s non-US business from Caesars for £2.2bn (€2.61bn/$3.02bn) in September.

An initial $50m will be paid on a cash-free, debt-free basis, with a potential addition of $4m conditional on six months of revenue-based performance.

The $50m will be paid in cash upon completion of the deal.
As part of the agreement 888 will hand over all its bingo assets, including technology, operations and consumer brands.

888 has also agreed to offer business services to Broadway that will aid in the transition.

“Following a strategic review, we have taken the decision to sell the bingo business,” said Itai Pazner, CEO of 888.

“This strategic transaction will enable 888 to further increase its focus on its core platform and unified, scalable and proprietary technology, and grow our key product verticals of casino, sport and poker, as we continue in our mission to be one of the world’s leading online betting and gaming businesses.”

In acquiring Dragonfish, Broadway will have access to its performance capabilities and customer base.

“We are delighted to reach an agreement with 888 to acquire its bingo business and platform,” said David Butler, CEO of Broadway Gaming.

“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.”

Original Article