TIDM888
RNS Number : 0313K
888 Holdings plc
11 December 2018
11 December 2018
888 Holdings Plc
("888" or the "Group")
888 acquires remaining interest in All American Poker Network
for US $28m
-- 888 acquires the remaining 53% interest in the All American
Poker Network, a joint venture established in 2013, for US $28
million.
-- The acquisition is an important strategic milestone that will
facilitate the Group's future growth strategy in the US.
-- The acquisition gives the Group full flexibility to deliver
on multiple potential growth opportunities including developing new
strategic partnerships.
888, one of the world's leading online gaming entertainment and
solutions providers, announces the signing of an agreement by its
wholly-owned subsidiaries, 888 US Inc. ("888 US") and 888 US
Holdings Inc., for the acquisition of the remaining 53% interest in
AAPN Holdings LLC ("AAPN") that 888 US does not already own, from
its joint venture partner Avenue OLG Entertainment LLC ("Avenue")
and other minority shareholders of AAPN (together, the "Sellers")
for US $28 million (the "Consideration") (the "Transaction").
Background to the Transaction
The AAPN joint venture was established between Avenue and 888 in
March 2013 to launch 888's B2C brands in the regulated online
gaming market in the United States. Since November 2013, the
888poker and 888casino brands have been operating in New
Jersey.
The Transaction will give 888 independent control of its growth
strategy in the US moving forward. This strategy includes signing
new partnerships and continuing to deploy its proprietary products
and technology (both B2B and B2C) in new states as they regulate.
Over recent months, 888 has also further strengthened its position
in the US by:
-- In September launching 888sport in New Jersey alongside its
established poker and casino brands, marking the first time that
888 has offered sports betting in the United States and paving the
way for the Group to launch 888sport in additional US states as
future regulation allows; and
-- Signing a landmark sponsorship agreement with the New York
Jets of the National Football League ("NFL"), marking the first
such agreement between an NFL team and a pure-play online gaming
operator.
Itai Frieberger, Chief Executive of 888 commented:
"The acquisition of the remaining stake in AAPN is an important
strategic step towards 888 achieving its exciting long-term
potential in the US. Taking outright ownership of AAPN gives 888
additional operational, technological and commercial flexibility to
develop innovative and exciting new partnerships and launch in new
states - through both B2B and B2C channels - as and when future
regulation allows. This acquisition places 888 in an even better
position to take advantage of the significant growth opportunities
in the US and create additional value for our shareholders.
The AAPN joint venture has been a very successful endeavour for
the Group. It has afforded us the flexibility and financial
capability to build a position in the regulated US market over the
last five years whilst also investing in other global regulated
markets. I would like to thank Avenue Capital for being fantastic
partners in this venture since 2013."
Details of the Transaction
The consideration of US $28 million will be satisfied all in
cash, with US $10 million being paid to the Sellers on or about the
date of this announcement and the remainder of US $18 million to be
paid by 31 March 2019.
Transaction Classification
The Transaction constitutes a class 2 transaction for the
purposes of the UK Listing Rules ("LR"). For the purposes of LR
10.4.1 R (Notification of class 2 transactions), the value of the
gross assets of AAPN is US $10 million and AAPN generated a loss of
US $3 million in 2017.
Important Notices
This announcement contains inside information and is issued on
behalf of 888 by its Board of Directors. This announcement is
issued at 7:00 am GMT on 11 December 2018.
This announcement contains forward-looking statements with
respect to the operations, performance and financial condition of
888. By their nature, these statements are subject to risks,
assumptions and uncertainties that could cause actual results to
differ materially from those expressed or implied because they
relate to future events.
Unless otherwise required by applicable law, regulation or
accounting standard, 888 does not undertake to publicly update any
forward-looking statements, whether as a result of new information,
future developments or otherwise. Nothing in this document should
be construed as a profit forecast.
Nothing contained in this announcement constitutes or shall be
deemed to constitute an offer or invitation to invest in otherwise
deal in any shares or other securities of 888.
For more detailed information about 888, see the Investor
Relations section of the 888 website.
Enquiries and further information:
888 Holdings Plc
Itai Frieberger, Chief Executive Officer +350 200 49 800
Aviad Kobrine, Chief Financial Officer +350 200 49 800
+44(0) 207 796
Hudson Sandler (public relations) 4133
Alex Brennan 888@hudsonsandler.com
Hattie O'Reilly
Bertie Berger
About 888 Holdings Plc:
-- 888 Holdings Public Limited Company (888) is one of the
world's most popular online gaming entertainment and solutions
providers. 888's mission is to supply its customers with innovative
and market-leading online gaming products, above all in a safe and
secure environment.
-- 888 has been at the forefront of the online gaming industry
since foundation in 1997, providing to players and B2B partners an
always innovative and world-class online gaming experience. At the
heart of 888's business is its proprietary gaming technology and
associated platforms.
-- 888 operates in three US states: Nevada, Delaware and New Jersey.
-- The Group is structured into two lines of business: B2C,
under the 888 brands, and B2B, conducted through Dragonfish, which
provides partners a leading platform through which to establish an
online gaming presence and monetise their own brands.
-- 888's consumer facing websites offer more than just online
gaming. They are entertainment destinations: places where people
can enjoy a truly interactive experience and be part of an online
community that shares common interests. 888's strong and trusted
brands are all accessible through www.888.com.
-- Find out more about 888 at http://corporate.888.com/.
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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