• Thu. Sep 23rd, 2021

888 Holdings Trying to Go Large in M&A, Says CEO Pazner


Sep 3, 2021

Posted on: September 2, 2021, 10:35h. 
Final up to date on: September 2, 2021, 02:30h.

Todd Shriber Learn Extra

Rely Israel’s 888 Holdings among the many firms trying to take part in gaming business consolidation in an enormous approach.

888 CEO Itai Pazner seen in an interview earlier. He says his firm is occupied with mergers and acquisitions. (Picture: CNBC)

In an investor presentation launched yesterday, the gaming firm highlights “strategically enticing mergers and acquisitions” as one in all its prime strategic priorities. CEO Itai Pazner confirmed in an interview that the operator may very well be on the prowl for offers.

We really feel that we’re in an excellent place to participate in important M&A actions, and we’re able to look and assess any alternative that comes our approach,” he stated.

888 was based in 1997. It beforehand gained publicity to the US by way of an settlement with the Delaware Lottery, and by operating the World Sequence of Poker’s on-line platform for Caesars Leisure.
Nevertheless, the Israeli firm is pivoting in direction of sports activities wagering, not too long ago putting an settlement with Sports activities Illustrated proprietor Genuine Manufacturers Group (ABG) to make use of the venerable sports activities journal’s title on sportsbooks.
The place 888 May Go Buying
Gibraltar-based 888, which trades in London, has a market capitalization of about $2.1 billion, placing it within the small-cap territory.

Nevertheless, that’s not stopping the operator from being connected to some consolidation rumors of significance. For instance, 888 is extensively seen as one of many three main contenders for William Hill’s worldwide belongings. Caesars Leisure (NASDAQ:CZR) is within the technique of auctioning these companies and is predicted to announce a successful bidder within the fourth quarter.

If 888 is profitable in successful these belongings, it will bolster the operator’s already important European footprint. Within the first half of 2021, the UK, Italy, and Spain mixed for 62 % of the operator’s income, in response to the investor presentation.
Within the US, the SI Sportsbook simply launched in Colorado, and 888 stated it will likely be in Indiana, Iowa, and New Jersey over the subsequent a number of months. The corporate is aiming to be in 15 states by 2024, and command at the very least a 5 % share in every of these places.
Pazner didn’t touch upon particular firms within the US or elsewhere which can be on 888’s buying listing. The corporate has an acquisitive historical past, making two acquisitions in 2019. With many operators choosing small, bolt-on offers, 888 might choose to go that route slightly than making an enormous, expensive splash.
Hunted Turns into Hunter
Earlier this yr, 888 was rumored to be a potential goal for Las Vegas Sands (NYSE:LVS), which lacks on-line gaming and sports activities wagering publicity. However it’s been seven months since that hypothesis appeared, with nothing in the way in which of follow-up.
Owing to its market worth and different bigger gamers expressing curiosity in acquisitions, 888 makes for a logical goal in takeover talks. However chatter to that impact is non-existent because the LVS rumor surfaced.
888 is licensed in Gibraltar and the UK, and in addition holds permits in Spain, Italy, Romania, Denmark, Nevada, and New Jersey, in response to its web site.

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