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(Reuters) -British gambling firm 888 Holdings Plc said on Wednesday it would sell its Bingo business to a unit of UK-based Broadway Gaming Group for $50 million, as it focuses on its core offerings and the U.S. market.
The online betting company, which undertook a strategic review of Bingo, said the sale encompasses all of the unit, including its exclusive technology, assets and consumer-facing brands.
888 has benefited from core platforms like online betting and gaming getting a boost during the COVID-19 pandemic as restrictions led consumers stuck at home to turn to online betting for entertainment.
The deal will be on a cash- and debt-free basis, which means the seller will keep all the cash from its balance sheet and pay off its debt at the time of the sale.
"This strategic transaction will enable 888 to further increase its focus on its core platform and unified, scalable and proprietary technology," Chief Executive Officer Itai Pazner said.
888 said the sale is expected to be completed during the second quarter of 2022, and would occur only if Bingo is reorganised and the new structure receives its own licence to operate under British laws.
In September, 888 agreed to buy William Hill's non-core business outside the United States from casino group Caesars, getting access to its two million active users in Britain along with 1,400 betting shops.
(Reporting by Amna Karimi and Sinchita Mitra in Bengaluru; Editing by Rashmi Aich and Devika Syamnath)