888 Holdings buys sports betting platform of BetRight for £15m
Updated : 09:12
Online gaming company 888 Holdings has agreed to buy the sports betting platform of Irish gaming group BetBright for £15m.
888 said the deal strengthens its product and technology capabilities and will support the long-term development strategy for 888Sport.
The integration of BetBright's sportsbook into the group will give 888 complete ownership over its technology and product development across four key online betting verticals: casino, sport, poker and bingo.
Chief executive Itai Pazner said: "This acquisition of a high-quality and scalable sportsbook is an exciting milestone for 888. It gives the group the missing piece in our proprietary product and technology portfolio and will enable 888 to own proprietary, end-to-end solutions across the four major online gaming verticals.
"With 888Sport becoming an increasingly established and popular worldwide sports betting destination, we believe it is the right time to take ownership of our full sports betting proposition. We are confident that this acquisition will increase the group's long-term prospects and differentiation in the growing global sports betting market."
888 said it will begin the integration process of BetBright's technology "as soon as practically feasible". It aims to start a phased and market-by-market roll out of its proprietary sports book solution once integration is completed.
At 0840 GMT, the shares were down 1.6% to 177.10p.
Canaccord Genuity reiterated its 'buy' rating on the stock and said: "While we expect the transaction to initially be modestly earnings dilutive due to the incremental opex, this is far outweighed in our view by the significant strategic benefits the deal brings and enhanced medium-term growth opportunities.
"BetBright provides a modern tech stack, strong risk management capabilities and a true sportsbook DNA, complementing the existing elements of the 888sport offer. It is also well advanced in offering full customer personalisation, a theme we expect to become increasingly important in the battle for market share."