William Hill to acquire Mr Green for £242m
London-listed bookmaker says the deal for the Swedish online casino operator will improve its international footprint and revenue mix
William Hill is to acquire Swedish online casino operator MRG (Mr Green) for approximately SEK 2.8bn (£242m) in a deal the London-listed firm said would help improve its international footprint and reduce its reliance on the UK market.
The SEK 69 per MRG share offer announced this morning, which is a a 48.5% premium on its closing price, has been unanimously recommended by the MRG board to shareholders, who have undertaken to accept the offer.
According to Hills, the deal will enable the operator to expand its international business and reduce Hills’ reliance on the UK market, which is currently undergoing significant regulatory change.
It also increases William Hill’s revenue mix with online set to increase from 42% to 47% of the business (excluding William Hill US) based on HY2018, while international revenues will also increase from 14% to 21%.
The integration of MRG into the William Hill business will be led by Hills’ chief digital officer Ulrik Bengtsson, who has a track record in the Nordic online gambling market from his time at Betsson.
William Hill CEO Philip Bowcock said: “This proposed acquisition accelerates the diversification of William Hill – immediately making us a more digital and more international business.
“MRG will provide William Hill with an international hub in Malta with market entry expertise and strong growth momentum in a number of European countries.
“William Hill will move from a single brand to a suite of brands that can maximise growth opportunities moving.”
MRG curently operates in 13 markets and is also expected to obtain licences in the newly regulated Swedish gambling market next year.
William Hill’s share price was 213.98 on the London Stock Exchange at the time of writing.
More to follow…