The leading betting and gaming company that is globally recognized with its brands that include Mr Green, William Hill and 888, 888 Holdings Plc, announced it has come to an agreement to sell its Latvian-facing business. In a deal for some €28.3 million ($30.6 million), the company agreed to sell its Latvian business to Paf Consulting abp.
A breakdown of the price tag of the deal reveals that €24 million ($26 million) will be paid in cash upon completion of the transaction on a cash-free debt-free basis. Separately, in 2024, another payment of up to €4.25 million ($4.6 million) will be completed contingent on the 2023 audited financials from 888’s Latvian businesses.
The deal, which was announced Monday, is expected to be closed in the coming weeks. Upon completion, Paf will acquire 100% of 888’s Latvian-facing businesses. Still, it’s important to mention that the Group owns “90% of the entity and the consideration will be used for general corporate purposes,” explains a statement released by 888.
“We are thrilled to get the opportunity to continue to build on a great Latvian success story.“
Christer Fahlstedt, CEO of Paf
Paf’s CEO, Christer Fahlstedt, said that the company is excited to continue to expand its presence in Latvia. He said: “With a long-term perspective, we are convinced that the Latvian market is moving in the direction of increased player protection and thereby a great strategic fit for Paf.”
The Sale Is in Line with 888’s Growth Strategy
Without any doubt, the gambling market in Latvia represents an important jurisdiction for the Old Continent. Last year, 888’s Latvian-facing businesses helped generate net revenue of £9.1 million ($11.3 million) as well as EBITDA of £2.5 million ($3.1 million), reaffirming the importance of the market. According to 888, its businesses in Latvia operate via a local license with the brands Mr Green and William Hill. In light of the takeover of the businesses in the country, the company said it will “provide a brand license to continue the usage of these brands within Latvia for a limited period.”
“The Latvian business is a high-quality, locally regulated business, with an excellent team that has built a strong market position.“
Lord Mendelsohn, executive chair of 888
Lord Mendelsohn, 888’s executive chair, explained that the company continues to evaluate its current assets and explore options that help boost its long-term strategy and at the same time maximize the value for shareholders. He spoke about the high quality of 888’s Latvian business which also has a strong team of experts. Finally, Lord Mendelsohn predicted that the Latvian-facing business will continue to grow under Paf’s ownership.