Under the new agreement, Broadway Group will integrate 888’s Dragonfish B2B holding and several B2C operators, including its technology, assets, operations, customer base and consumer brands.
The transaction is expected to close in the second quarter of 2022, depending on the reorganization of the bingo activity and the new structure of this holding company benefiting from a UK Gambling Commission Licence.
888 made the decision sell its bingo divisions following a review in which the LSE-registered gambling group concluded to better focus on its core platform, generate revenue to âcore marketsâ such as the US and eliminate a complex compliance situation due to related accounts on B2C, B2B and major platforms.
CEO of 888, Itai Pazner, spoke in a press release about the transaction and said, âAs a result of a strategic review, we have made the decision to sell the bingo business. This strategic transaction will allow 888 to further focus on its core platform and unified, scalable and proprietary technology, and grow our core casino, sports and poker verticals, as we continue our mission to be one of the world’s leading online betting and gaming companies. 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 brands. As part of an expanded business, I am very confident that the future of the bingo industry is bright. I would like to express my immense gratitude for all the hard work of the team over the years. “
Broadway aims to become the UK’s premier online bingo network, expanding its brand portfolio with the B2C brands of Wink, Costa and Robin Hood bingo. The 888 bingo teams will also move to Broadway.
David Butler, CEO of Broadway Gaming, said: âWe are delighted to have entered into an agreement with 888 to acquire its bingo business and platform. By combining them with our existing businesses and brands, which include âButlers Bingoâ, we will be able to achieve an even stronger global footprint in the major regulated bingo markets. We have worked extensively with the 888 Group over the past few months and have been very impressed with the quality of the bingo platform and product, the B2C and B2B activities, its approach to safer play and player protection. , and especially the management team. We see other significant expansion opportunities in the B2C and B2B segments, and we are very excited about our plans for the future, as we work closely together to become the leading online bingo company in the world. world.
The purchase will be paid in cash at completion on a cash-free and debt-free basis and will include a potential earn-out of up to $ 4 million, who will be payable within approximately six months, after completion of the takeover bid based on performance criteria based on sales.
Through the acquisition of 888 bingo holdings, Broadway will secure access to a predominantly UK-based business with 2020 revenue of $ 65 million and EBITDA of $ 7.4 million, which was estimated to be worth $ 71 million, according to the balance sheet of the group at June 30, 2021.