Tipico and CVC Capital Partners have set their sights on William Hill’s international assets, up for sale by Caesars Entertainment.
Tipico and CVC Show Interest in William Hill’s Non-US Assets
Tipico, an international provider of sports betting and casino games, is one of the latest frontrunners for the acquisition of William Hill UK and European assets, up for sale by Caesars Entertainment.
According to Sky News, sources disclosed information on Tipico’s “credible offer” to Caesars Entertainment. The company is selling William Hill’s international assets for UK and Europe at a combined value of $1.6 – $2 billion. The sale comes at a time when the UK government is making a review of the 2005 Gambling Act. The outcome of it could impact the valuation of the assets.
Even though there aren’t many details on the offer, Tipico’s potential bid could be funded by CVC Capital Partners, its majority owner, as the company is looking to invest in more assets in the gambling industry.
CVC Continues to Build Up an Impressive Gambling Portfolio
CVC Capital Partners, a private equity investment company, is popular with its fund targeting gambling acquisitions.
Between 2014 to 2016, the company made multi-billion acquisitions of companies like Sisal Italia, Sky Bet and Tipico, building its impressive gambling portfolio. Now, the company manages around $75 billion in assets. The company sold Sky Bet to The Stars Group for nearly $5 billion in 2018, after which Stars Group made a $14 billion merger with Flutter Entertainment.
Tipico and CVC have joined a growing number of equity suitors interested in the acquisition of William Hill. Other companies eyeing the assets are Betfred, Apollo Global, Advent PE, Kindred Group, 888 Holdings and BoyleSports.
For Tipico, this acquisition would bring an opportunity to diversify its operations from the harshly re-regulated German gambling market. All European companies have made expensive adjustments to their businesses in order to bring them in line with the regulatory requirements of the GlüNeuRStv regime.
888 and Advent Show Interest in William Hill’s Assets
Israel-based 888 Holdings announced its interest in William Hill’s international assets in March, and, in June, the company was rumored as one of the possible buyers. According to analysts, investors should buy 888 shares ahead of any acquisition of assets.
In July, Advent International, a private equity company, was rumored as yet another possible buyer for William Hill’s non-US assets. Many experts are optimistic about the company. However, it never acquired assets, so this could be its debut.