888 Holdings plc has acquired the remaining interest in All American Poker Network for $28 million. Shares in the company edged up by roughly 6% following the announcement.
All American Poker Network is a joint venture established in 2013. 888 purchased the remaining 53% interest in the company for $28 million. According to the company, the purchase will facilitate its future growth strategy in the US. Likewise, it gives the group full flexibility to deliver on multiple potential growth opportunities and develop new partnerships.
888 is one of the world’s leading online gaming entertainment and solutions providers.
Chief Executive of the company, Itai Frieberger, commented on the acquisition:
“The acquisition of the remaining stake in AAPN is an important strategic step towards 888 achieving its exciting long-term potential in the US. Taking outright ownership of AAPN gives 888 additional operational, technological and commercial flexibility to develop innovative and exciting new partnerships and launch in new states – through both B2B and B2C channels – as and when future regulation allows. This acquisition places 888 in an even better position to take advantage of the significant growth opportunities in the US and create additional value for our shareholders.”
“The AAPN joint venture has been a very successful endeavour for the Group. It has afforded us the flexibility and financial capability to build a position in the regulated US market over the last five years whilst also investing in other global regulated markets. I would like to thank Avenue Capital for being fantastic partners in this venture since 2013.”
In addition to the acquisition, the company has been consolidating its position in the US. In September, 888sport was launched in New Jersey alongside its poker and casino brands. This was the first time that the company had offered sports betting in the US. Moreover, it signed a landmark sponsorship agreement with the NFL’s New York Jets. This agreement was the first of its kind between an NFL team and a pure-play online gaming operator.
Earlier this year, the supreme court decided to legalise sports betting in the US.
At 11:16 GMT today, shares in 888 Holdings Public Limited Company (LON:888) were trading at +5.91%.