In a £2.2 billion agreement, 888 Holdings has agreed to buy William Hill’s European operation from its US owner.

The arrangement with Caesars Entertainment will encompass William Hill’s 1,400 UK betting shops, according to the online gambling company.

The deal, according to 888 CEO Itai Panzer, will “build one of the world’s biggest online betting and gaming businesses.”

The merger will result in a combined workforce of more than 12,000 people.

It expects to save almost £100 million each year as a result of the transaction.

With the addition of a legendary sports brand, 888 claimed the deal will provide it “substantially expanded exposure to sports betting, the world’s largest and fastest expanding online segment.”

The presence of William Hill on High Street was also cited as a key influence in the decision.

“Our strategies are also complementary, since we are digitally led, consumer centred, and dedicated to player protection and improving industry standards around safer gambling,” Mr Panzer continued.

“We’re also enthused about the prospects that the retail industry offers and see major brand benefits,” says the company.

William Hill and 888 Holding strategies with a thorough focus on the product and the client experience,” stated Ulrik Bengtsson, chief executive of William Hill.

In our industry, scale is becoming increasingly crucial, and the merging of the firms will result in a tremendous alignment of brands and technology.”

Caesars Entertainment started an auction for non-US half of William Hill’s company, which includes online operations in the UK and Europe after it bought the gambling behemoth for £2.9 billion in April.

The owner of the Caesars Palace casino only wanted the company’s US operations and stated from the start that it intended to sell other sections of the company once the acquisition was completed, prompting a bidding war.

Caesars Entertainment CEO Tom Reeg expressed his excitement at having “found an owner for the William Hill business out of the US with the same aims, approaches, and longer-term ambitions of that business.”

Apollo, a private equity firm based in the United States, was also in the running to buy the European company.

The takeover of 888 is still subject to shareholder approval, as well as the permission of the Financial Conduct Authority.

The chair of 888 Mendelsohn believed the purchase will create a significant value for shareholders

. “We believe the purchase will create a combined business inline with global leading gambling technology, products, and brands across sports betting, gaming, and poker.

The William Hill brand began in 1934 when its founder established a mail and phone-based betting business, then moved to betting shops in the UK around the 1960s, just after it became allowed to have them on High Streets.

The value of the brand’s brick-and-mortar stores, which were primarily closed throughout the pandemic, has been questioned.

The company said in August of last year that it would not reopen 119 of its betting shops following coronavirus lockdowns, claiming that it did not expect clients to return in the same numbers as before the outbreak.

source: bbc