Gaming giant Caesars Entertainment, Inc. has completed the acquisition of William Hill PLC for the sum total of $4 billion. The transaction shifts control of William Hill’s assets in the United States over to Caesars, which will use the newly-acquired entities to leverage its position in the United States’ fast-developing market.
The deal was led by Deutsche Bank and Latham & Watkins, LLP, and Linklaters, LLP, who represented Caesars Entertainment, and by Barclays Bank PLC, Citigroup Global Markets Limited, PJT Partners, and Slaughter & May by on William Hill’s side.
What Is Caesars Entertainment after with William Hill’s Acquisition?
After William Hill announced it will unload its US assets, there have been several bidders for the company’s intellectual property and network of established operations. Apollo Global was among the bidders for the igaming operator’s facilities, but the bid was ultimately won by Caesars Entertainment, which offered the best conditions.
The deal will seek to boost the online gaming and sports betting footprint Caesars already enjoys in the United States. Commenting on this event, Caesars Entertainment CEO Tom Reeg simply stated:
“We are thrilled to complete the acquisition of William Hill, combining two of the premier operations in the sports betting and igaming industries under one roof. We look forward to announcing future sports partnerships that will drive long-term growth.”
The acquisition also gives Caesars Entertainment the opportunity to rapidly expand its loyalty program to William Hill properties and consumers. Caesars will also enable a single-wallet solution for sports betting and igaming products that are run under the same brand.
In the meantime, William Hill is still in the process of looking for a buyer for its non-US assets, which remain to be liquidated and sold off to a bidder. In the meantime, Caesars is determined to continue spending on its existing operations.
Through this link-up, Caesars will now be present in 18 jurisdictions across the United States, with 13 already offering mobile sports betting. William Hill’s offer is heavily focused on the retail segment with a strong footprint across the country. Caesars expects to be fully operational in at least 20 jurisdictions in the US by the end of 2021, giving the company an edge against competitors such as FanDuel, DraftKings and BetMGM.
The igaming operator vowed to allocate additional $400 million to Atlantic City resorts by 2023 in a bid to renovate its facilities there and stimulate tourism. It has also been able to position itself as one of the first authorized sports betting operators for the National Football League in a landmark agreement between the company and the league.
Following its acquisition of Eldorado, the combined business posted a loss of $2.72 billion after the first year of operation. Caesars, however, is positive it can bounce back as its acquisition and expansion push continues.
The company also announced that they are searching for a new CFO that will include a seat on the Williams Caesars Management Board.
June 2021 Update: The group found a new CFO, you can read all about it here.
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