Yesterday, 888 Holdings, an online betting company, made a huge announcement in regards to their sports betting interest in Latvia. According to the announcement, 888 Holdings agrees to sell Latvian business to Paf Consulting Abp for €28.3 million. Therefore, the sell will include the complete control of their William Hill and Mr Green operations in Latvia.
The deal will include a brand license which will allow Paf to use the William Hill and Mr Green brand. The sale is for 100% of the business. Furthermore, it will have an initial consideration of €24 million to be paid in cash upon completion of the transaction. In addition, it will include a further potential earn-out of up to €4.3 million. It will be payable in 2024 upon completion of this year’s audited financials.
According to gambling software analysts, 888 told investors the cash from the sale would be for general corporate purposes.
Paf Consulting, a manufacturer and distributor of gaming console which began their business with the purpose of benefiting society. In fact, their founding associations include the Red Cross and Save the Children. Christer Fahlstedt, the CEO of Paf said that the long-term perspective of the purchase is to increase player protection.
888 Holdings agrees to sell Latvian business to Paf for €28.3 million
888 Holdings said selling their Latvian business is part of their plan to focus on its core and growth markets. Lord Mendelsohn, Executive Chair of 888 said that selling their assets in Latvia will contribute to their long-term strategy. Furthermore, it will also “maximize value for their shareholders.”
888 owns 90% of the Latvian entity. However, the business functions as an independent entity with its own management team and separate technology platform. Therefore, 888 expects the sale to have no impact on its ongoing operations.
The decision was made because their business in the Baltic region is of relative exposures. Therefore, it is not one of their core growth markets that they are prioritizing in their investments. Since the market is fairly small in comparison to the other regions they are, it is better for smaller companies. Hence, it is a perfect environment for sportsbooks that use a pay per head to run their gambling operation.
Both 888 Holdings and Paf Consulting expect to complete the sell withing the coming weeks. In addition, after the announcement was made, 888 Holdings shares were trading 1.8% higher at 78.35 pence each.
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