888 sells Latvian business to Paf Consulting in $30.6M deal

In a move aimed at streamlining its asset base, online gambling operator 888 has announced the sale of its Latvian business to Nordic gaming company Paf Consulting in a deal valued at up to €28.3 million ($30.6 million).

Under the agreement, Paf Consulting will make an initial cash payment of €24 million ($25.9 million) upon completion of the transaction, with an additional €4.3 million ($4.6 million) due in 2024, subject to the conclusion of 2023 audited financials.

The Latvian business operates with a local license under both the William Hill and Mr Green brands. 888 will provide a brand license to continue the usage of these brands within Latvia for a limited period, the company said.

While 888 owns 90% of the Latvian entity, the business functions as an independent entity with its own management team and separate technology platform. As a result, 888 expects the sale to have no impact on its ongoing operations.

Completion of the deal is subject to several closing conditions, including the separation of the Latvian subsidiary from 888's supplier contracts and its integration into Paf's contracts. The finalization of the transaction is anticipated in the coming weeks. 888 intends to utilize the proceeds from the sale for general corporate purposes.

"We continually review our asset base to ensure that we are only holding assets that both contribute to our long-term strategy and will maximize value for our shareholders," stated Lord Mendelsohn, Executive Chair of 888. “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 prioritize our investments."

Lord Mendelsohn, Executive Chair of 888

He further expressed gratitude to the Latvian team for their dedication, highlighting their achievement in establishing a strong market position. Mendelsohn expressed confidence that, under Paf's ownership, the business will continue to thrive.

Paf's CEO, Christer Fahlstedt, shared his enthusiasm for the acquisition, calling it an opportunity to build upon "a Latvian success story." Fahlstedt emphasized the long-term perspective and strategic fit of the Latvian market for Paf, emphasizing the market's direction toward increased player protection. 

Meanwhile, Janis Tregers, Co-Founder and Head of the Latvian board, stated: "We launched in 2012 as 11.lv, and in 10 years, have built a market-leading position in Latvia, with over 10% market share. Under the new ownership of Paf, I am confident that the business will continue to go from strength to strength, delivering great products and experiences for customers."