Online Gambling Industry Consolidation 888 Moves Forward

Published Friday, July 17, 2015 - Online-Casinos.com
Online Gambling Industry Consolidation 888 Moves Forward

The value of consolidation was evident in the recent takeover battle for the online gambling firm bwin.party Digital Entertainment. For the last few months the bidding has been furious with the bigger online gambling operators such as Amaya Gaming in conjunction with GVC Holdings making a move to acquire bwin.party. GVC made a cash and shares bid that valued it at £906 million and less than six months ago the rival online gambling firm 888 Holdings rejected a takeover bid from U.K bookie William Hill, which valued it at about £750 million.

It was recently announced that 888 Holdings has won the right to purchase bwin.party Digital Entertainment in a cash and shares deal worth £898m. 888 Holdings which is headquartered in Gibraltar was pleased with the acquisition and commented that the agreement is a “transformational opportunity.”

Bwin.party controls some of the world’s most profitable online gambling brands, including partypoker, partycasino and FoxyBingo. Bwin.party has a staff of 2300 people and has operations in Europe, India and the United States. The company generates annual revenues of €612m (£426.5m).

This acquisition deal is expected to be completed by the start of next year and will according to a 888 spokesperson lead to savings of at least £45m per year by the end of the 2018.

Executive chairman for the 888 organization, Brian Mattingley commented,  “This is a transformational opportunity for 888 in the consolidating online gaming industry, which is expected to grow significantly over the coming years.”

The chairman for bwin.party, Philip Yea also commented,“Bringing our two groups together will generate substantial financial synergies for the benefit of both sets of shareholders and create a strong player with the breadth of product, brands and geographic coverage to grow faster than either business would be able to achieve standalone.”

Norbert Teufelberger, CEO of bwin.party will not be joining the new enterprise but will be retained as a consultant when needed.

 

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