A private investment firm, Beach Point Capital Management, has structured financing for Broadway Gaming Group in their purchase of 888 Holdings’ bingo division. This transaction, concluded in July of 2022, involved 888 selling both its consumer-facing and business-to-business bingo units to Broadway’s subsidiary, Saphalata, for an aggregate price of $45.2 million.
This calculated maneuver highlights Broadway Gaming’s goal to bolster its position within the competitive UK online gaming sector. The newly acquired bingo operation, which documented $25 million in income for the initial six months of 2022, represents a significant asset to Broadway’s holdings.
Broadway Gaming’s Chief Executive Officer, David Butler, conveyed his excitement regarding the purchase, emphasizing its capacity to broaden their reach within the UK market. He also commended Beach Point Capital for their cooperative method in crafting a customized financing arrangement that enabled the achievement of their strategic aims.
This agreement comes on the heels of 888’s June 2022 declaration, where they disclosed robust financial results for the year ending February 28, 2022, with earnings attaining £6.9 billion (roughly $8.4 billion) and adjusted EBITDA reaching £1.09 billion. This divestiture permits 888 to further refine its operations and concentrate on its primary offerings.
The business also emphasized the beneficial effect of store reopenings following the lockdown period, noting robust results across various regulated markets.