888 Holdings (888) is selling its bingo business to Saphalata Holdings (Saphalata) – a member of the Broadway Gaming Group (Broadway) – in a discounted £38m ($50m) deal.
The sale encompasses the entire bingo business, including all its technology, assets, operations, B2B clientele and consumer-facing brands.
Gross assets of the business were valued at $71m as recently as June.
The online gambling giant wants to focus on its core business and North American expansion.
888 decided to sell the business following a strategic review – with the company struggling to improve the performance of its bingo services, which reported loss before tax in 2020 of $76.4m.
The deal is dependent on the new bingo division at Saphalata receiving a gambling licence, with hopes the acquisition can be finalised in the second quarter of 2022.
Itai Pazner, chief executive of 888, said: “Following a strategic review, we have taken the decision to sell the bingo business. This strategic transaction will enable 888 to further increase its focus on its core platform and unified, scalable and proprietary technology, and grow our key product verticals of casino, sport and poker, as we continue in our mission to be one of the world’s leading online betting and gaming businesses.”
David Butler, chief executive of Broadway Gaming, commented: “We are delighted to reach an agreement with 888 to acquire its bingo business and platform. By combining these with our existing business and brands, which include ‘Butlers Bingo’, we will be able to achieve an even stronger global footprint in key regulated bingo markets.”
888’s shares are down 0.07 per cent at close of play on the FTSE 250 following the announced deal.