Caesars Entertainment, Inc. (NASDAQ: CZR) said that it has updated its agreement to sell William Hill's non-US assets to 888 Holdings Plc for between £1.95 billion and £2.05 billion. Previously, Caesars Entertainment, Inc. has inked an agreement to sell the non-US assets of William Hill to online betting and gaming company 888 Holdings Plc (888. L) for around 2.2 billion pounds.
It has been revealed earlier that Caesars is likely to obtain a net profit from the deal of around 835 million pounds or $1.2 billion after the repayment of debt and other working capital adjustments. As the company has updated the agreement, the new deal includes a £250 million decrease in cash consideration due at the close, as well as Caesars' right to receive up to £100 million in delayed payment if 888 Holdings Plc's enlarged business meets specified financial benchmarks in 2023.
Furthermore, Caesars anticipates obtaining net funds from the transaction of about £585 million or $785 million at closure, after debt repayment and other working capital adjustments, and subject to customary closing acquisition price adjustments. The deal is likely to depend on 888 Holdings Plc shareholders' approval as well as regulatory approvals. The purchase is expected to finalize in June 2022, according to Caesars.
Earlier, 888 Holdings said that the purchase of William Hill International by 888 offers a "transformational opportunity" for the company to expand its scale, diversify its product mix, and accelerate its revenue growth profile, according to the company. In addition, the consolidation of 888 and WHI is expected to result in considerable operational improvements, including pre-tax synergies of at least 100 million pounds per year, which will contribute to higher profit margins.