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888 to purchase Foxy Bingo owners Bwin.party

Gibraltar-based online gambling company 888 Holdings Plc has paid £898million in a takeover of rival company Bwin.party Digital Entertainment Plc. 888 Holdings logo 888 has described the takeover as being a ‘transformational opportunity’ that will allow the combined group to offer more games and save money. In fact, it is estimated that the merge will lead to annual savings of at least £45million by the end of the 2018 financial year. 

Bwin.Party rejected other bids

 The deal comes just days after Bwin.party rejected a takeover bid by GVC Holdings, the company behind Poker Stars. Last week GVC made a bid valued at £906million. However, Bwin turned down the deal and chose instead to accept 888’s lower offer. Analysts believe this may indicate greater confidence in 888’s prospective share growth. Earlier this year 888 rejected a takeover bid by bookmaker William Hill, which was valued at around £750million. Both companies have been in takeover discussions since the middle of May and as the deal was announced, 888 saw its share prices increase by 11%. Bwin experienced a 3% increase in share prices. bwin.party logo The merger will see 888 adopt some of the industry’s biggest names, including sites such as Foxy Bingo, Party Poker and Party Casino, which are all owned by Bwin. Brian Mattingley, executive chairman at 888 commented: “This is a transformational opportunity for 888 in the consolidating online gaming industry, which is expected to grow significantly over the coming years.” Bwin’s chairman, Philip Yea, agreed that business growth was one of the main reasons for the merger. He said: “Bringing our two groups together will generate substantial financial synergies for the benefit of both sets of shareholders and create a strong player with the breadth of product, brands and geographic coverage to grow faster than either business would be able to achieve standalone.” It is expected that the deal will be completed by the start of next year.