Casino giant Caesars Entertainment Inc. (NASDAQ:CZR) has reached an agreement to acquire British gambling firm William Hill. The two have reached a $3.7 billion deal with the London based gambling company starting talks with shareholders.
Caesars- William Hill Merger
William Hill board has already agreed to a cash offer that values the company at 272 Pounds a share subject to shareholders approval. If everything goes as planned and the deal secures regulatory approval, it should close in the second half of next year.
Caesars has already confirmed it is looking for buyers for William Hill non-U.S business, which includes close to 1,400 UK betting shops. It has also started integrating the company's businesses and plans to carry out minimal cuts.
Prior to the two reaching an agreement, Caesars owned a 20% stake in the British gambling firm. Caesars is believed to have pushed for a deal as it sought to get hold of William Hills bookmarking business that boasts of 170 retail outlets in 13 States across the U.S.
Merger Benefits
According to William Hill Chairman Roger Devlin, the Caesars deal recognizes the significant progress the company has made over the past 18 months. The deal also recognizes the significant investment required to pursue the U.S opportunity with full throttle given the intense competition in the sector.
Caesars expects the acquisition to enhance the two companies existing partnership. The two companies are already in a joint venture in the U.S whereby William Hill takes sports bets at Caesars properties.
Prior to the two reaching an agreement, Caesars had threatened to terminate the partnership had William Hill agreed to be acquired by Apollo. Likewise, the acquisition should result in a combined company able to make good use of the fast-growing American sports betting and online gambling market.
William Hill comes into the deal having seen its business operations in the U.K come under immense pressure owing to the COVID-19 disruption the company had initially threatened not to reopen 119 of its U.K High Street betting shops.