888 Holdings has agreed a deal to sell its Latvian business to Finnish gaming operator Paf for €28.3 million.
According to a Paf statement, the deal is expected to go through in the coming weeks with Paf taking full control of William Hill and Mr Green operations in Latvia through the WilliamHill.lv and MrGreen.lv domains. According to reports, both businesses have a combined 10% market share in the country and generated net revenue of €10.47 million (£9.1 million) and EBITDA of €2.8 million (£2.5 million) in 2022.
As part of the deal, 888 will supply Paf with a brand license for a limited period allowing both William Hill and Mr Green brands to continue operating in the market.
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.”
Following the takeover, Paf will become the third largest gaming company in the Latvian market.
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