UK gambling group 888 will buy William Hill's non-US assets for £2.2 billion from US casino group Caesars in a deal that will give the online betting group access to 1,400 betting shops across Britain.
The purchase is 888's largest since it listed in London in 2005.
The deal will also give the company access to William Hill's 2 million active UK customers at a time when pandemic curbs have spurred record online gambling volumes.
Caesars bought William Hill for £2.9 billion earlier this year as part of a wider consolidation in the gambling industry. US gaming companies have been buying up London-listed groups to gain more expertise as the US opens up to sports betting.
"We have found an owner for the William Hill business outside the US which shares the same objectives, approaches and longer-term ambitions of that business," Caesars CEO Tom Reeg said today.
888, with a market value of £1.5 billion, has obtained debt financing of about £2.1 billion from JP Morgan, Morgan Stanley and Mediobanca to fund the deal, which is deemed as a reverse takeover as per UK's listing rules.
The transaction includes £0.7 billion relating to the assumption of existing William Hill bonds, 888 said.
888 said it would raise about £500m through a share sale, adding that it expects cost savings of at least £100m a year from the purchase.
The Times reported earlier this week that 888 had outbid Apollo APO.N for the William Hill assets.
888 said it has received unconditional support for the deal from its largest shareholder, the Dalia Shaked Trust. The trust holds roughly 23% of the company.
