888 is selling its Latvian business to Paf for €28.25m (£24.6m), with completion on track for the “coming weeks.”
Paf will pay an initial €24m (£20.9m) upon completion, with a further potential earn-out of up to €4.25m (£3.7m) payable in 2024 upon completion of the 2023 audited financials.
The Latvian business operates with a local licence, using the William Hill and Mr Green brands. 888 says it will provide a brand licence to continue usage of these brands within Latvia for a limited period.
888 added that the transaction is expected to have no impact on the “ongoing operations and synergy program” of the group, amid the Latvia business operating “largely as an independent entity” with its own management team and separate technology platform.
The Latvia business made 888 £9.1m in net revenue in 2022, as well as £2.5m in EBITDA, with the value of the gross assets approximately £9.3m.
Lord Mendelsohn, executive chair of 888, said the group’s “relatively limited exposure” in the Baltic region means it is “not one of our core or growth markets.”
He added that the Latvian business is a “high quality, locally regulated business” which has built a “strong market position.”
Christer Fahlstedt, CEO of Paf, added the company is “convinced that the Latvian market is moving in the direction of increased player protection” and is therefore a “great strategic fit.”
