888 Holdings (LSE:888) PLC looks to have won a three-horse race for William Hill’s non-US bookmaking empire.
In an announcement on Thursday, the online gambling group confirmed it has struck a deal with Caesars Entertainment to take control of the assets, which carry an enterprise value of £2.2bn.
The deal would more than double the size of 888, five years after its initial attempt to buy William Hill in a complex £3bn deal with Rank, and six years after Hills failed in its lunge for 888..
According to reports, CVC and Apollo Capital Management had also been vying for control of the operation.
888 chief executive, Itai Pazner, said: "The acquisition of William Hill International is a transformational and hugely exciting moment in 888's history.
“This transaction will create one of the world's leading online betting and gaming groups with superior scale, exceptional brands, increased diversification, and a platform for strong growth.
“William Hill is an iconic sports brand, making it the ideal complement to 888, one of the leading global online gaming brands.
“Our strategies are also complementary, being digitally-led, customer-focused, and committed to player protection and raising industry standards around safer gambling.”
Founded in 1934, William Hill has over 1,400 betting shops and also has a digital presence in Spain, Italy and the Nordics.
Revenues last year were £1.16bn, £803mln of which were online, generating underlying earnings (EBITDA) of £157mln, compared to 888's sales of $814mln and EBITDA of US$156mln.
888 expects to generate pre-tax synergies of at least £100mln a year from the deal.
Five years after its failed tilt at Hill's, 888 “will feel that patience has paid off“, not least as the total bill this time is much smaller, said Russ Mould at AJ Bell.
“Moreover, the deal will hugely enhance 888’s size, share and competitive position, especially in the all-important online betting arena in regulated markets."