888 completes $30 million sale of Latvian business to Paf Consulting

England-based betting and gaming company 888 Holdings has announced the completion of the €28.3 ($30.53) million sale of its Latvian business to Paf Consulting.

The sale, which includes 100% of the business, was made for an initial consideration of €24 million in cash upon completion, with a potential earn-out of up to €4.3 million payable in 2024 upon the conclusion of this year's audited financials.

The Latvian business, operating under 888's William Hill and Mr Green brands, holds a local license and will continue to utilize these brands in the country for a limited period under a brand license provided by 888. 

Despite 888 owning 90% of the entity, the Latvian business operates independently, with its own management team and separate technology platform.

Lord Mendelsohn, executive chair of 888, stated: "The sale of the Latvian business marks another positive step in the execution of our integration program. This sale generates cash proceeds from a non-core market to support our deleveraging plans, as well as enabling reinvestment into our core and growth markets."

In related news, FS Group, an investment vehicle backed by former GVC chief executive Kenny Alexander, recently acquired a 6.57% stake in 888. The group secured a 4.55% holding, while the remaining 2.02% was transferred by Shay Segev, Alexander's successor before GVC's name change to Entain. The investment by FS Group is the latest development at 888 in 2023.

Earlier in the year, 888 saw changes in leadership, with Itai Pazner stepping down as chief executive in January. Lord Mendelsohn continues to serve as interim executive chair while the search for a permanent replacement continues.

The company's acquisition of William Hill's non-US assets from Caesars for £1.95 billion ($2.5 billion) in July 2022 also played a significant role in 888's recent developments. Despite taking on substantial debt, 888 performed in line with expectations in the 2022 financial year, recording a significant increase in revenue and adjusted EBITDA.

Following the completion of the Latvian business sale, 888's shares saw a 4.2% increase, reaching 111.20 pence each in London.