Paf has announced that the acquisition is anticipated to be finalized in the upcoming weeks, granting Paf complete ownership of William Hill and Mr Green operations in Latvia under the domains WilliamHill.lv and MrGreen.lv. Reports indicate that the two businesses collectively hold a 10% market share in the country, generating a net revenue of €10.47 million (£9.1 million) and an EBITDA of €2.8 million (£2.5 million) in 2022.
As a component of the agreement, 888 will provide Paf with a brand license for a specified duration, enabling the continued operation of both the William Hill and Mr Green brands in the market.
Lord Mendelsohn, Executive Chair of 888, commented:
“Our ongoing assessment of our asset portfolio ensures that we retain assets that align with our long-term strategy and deliver maximum value for our shareholders. The Baltic region, due to our limited exposure, is not a core or growth market where we focus our investments.”
Janis Tregers, co-founder and head of the Latvia board, stated:
“Since our launch as 11.lv in 2012, we have established a leading position in Latvia. In 2018, we sold 75% of the business to Mr Green at an enterprise value of €3.7 million. This transaction, valuing the entire business at up to €28 million, is a testament to the hard work of our team and the significant value we have created across the company.”
Christer Fahlstedt, CEO of Paf, expressed:
“We are delighted to have the opportunity to continue building on this remarkable success story in Latvia. With a long-term perspective, we firmly believe that the Latvian market is heading towards enhanced player protection, making it an excellent strategic fit for Paf.”
Following the acquisition, Paf will become the third-largest gaming company in the Latvian market.