888 Holdings sells bingo business for $50m
Online gambling group 888 Holdings on Wednesday said it had sold its bingo businesses to the Broadway Gaming group for $50m on a cash-free debt-free basis, including a potential earnout of up to $4m.
888 agreed to provide Broadway certain transitional services for a period of up to 12 months from completion, in accordance with an agreed fee schedule.
The bingo business, which is substantially UK-based, generated revenue of approximately $65m and core earnings of $7.4m last year and a $76.4m loss before tax, including a goodwill impairment of $79.5m.
"Following a strategic review, we have taken the decision to sell the bingo business. This transaction will enable 888 to further increase its focus on its core platform and unified, scalable and proprietary technology, and grow our key product verticals of casino, sport and poker,” said chief executive Itai Pazner.