Broadway Group’s Saphalata Holdings Ltd have confirmed that they are set to acquire 888 Holdings’ bingo business sector for $50m in an attempt to expand their US operations.
The deal will see Broadway take hold of Dragonfish Bingo, which was 888’s primary bingo platform and the latter have made the decision to sell following a strategic review of their overall business.
The $50m transaction will be paid in cash and includes an additional potential earnout of $4m. This will be payable within six months of the takeover, dependent on revenue-based performance criteria, as they integrate 888’s Dragonfish’s operators, including its technology, assets, operations, clientele and consumer facing brands.
David Butler, CEO at Broadway Gaming, said: “We are delighted to reach an agreement with 888 to acquire its bingo business and platform. By combining these with our existing business and brands, which include ‘Butlers Bingo’, we will be able to achieve an even stronger global footprint in key regulated bingo markets.
“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.
“We see significant further expansion opportunities in both the B2C and B2B segments, and are very excited about our plans for the future, as we work closely together to become the preeminent online bingo business globally.”
Official completion of the takeover is expected in the second quarter of 2022, so long as the new structure is approved and awarded an official license from the United Kingdom Gambling Commission.
It sees Broadway add another bingo brand to their portfolio which also includes Wink, Costa and RobinHood Bingo.
Itai Pazner, 888 CEO, said: “Following a strategic review, we have taken the decision to sell the bingo business. 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.
“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.”