LONDON, UK: 888, one of the world’s leading betting and gaming companies, has announced that it has agreed to sell its Latvian business to Paf Consulting Abp, a Finnish gaming operator. The deal is worth up to €28.25 million (£24.6 million) and is expected to be completed in the coming weeks.
The Latvian business operates under the William Hill and Mr Green brands, which 888 acquired as part of its takeover of Mr Green & Co AB in 2019. The business has a 10% market share in Latvia and generated net revenue of £9.1 million and EBITDA of £2.5 million in 2022.
888 said that the sale is consistent with its strategy to focus on core and growth markets and that the Latvian business operates largely as an independent entity with its own management team and technology platform. The Group will provide a brand licence to Paf for a limited period to continue using the William Hill and Mr Green brands in Latvia.
Lord Mendelsohn, Executive Chair of 888, said: “We continually review our asset base to ensure that we are only holding assets that both contribute to our long-term strategy and will maximise value for our shareholders. As a business, our relatively limited exposure in the Baltic region means that the region is not one of our core or growth markets where we prioritise our investments.”
Janis Tregers, co-founder and head of Latvia board, said: “We launched in 2012 as 11.lv, and in 10 years, have built a market-leading position in Latvia. In 2018, we sold 75% of the business to Mr Green at an enterprise value of €3.7 million, and this transaction to sell the entire business for a valuation of up to €28 million reflects the hard work of our team across the business resulting in significant value creation.”
Christer Fahlstedt, CEO of Paf, said: “We are thrilled to get the opportunity to continue to build on a great Latvian success story. With a long-term perspective, we are convinced that the Latvian market is moving in the direction of increased player protection and thereby a great strategic fit for Paf.”
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