ONLINE gambling giant 888 Holdings (888) has agreed to sell its bingo business to Saphalata Holdings (Saphalata), a member of the Broadway Gaming Group (Broadway) in a $50m deal.

The FTSE 250 company could receive a further $4m boost from the sale if the bingo division hits its revenue targets over a six-month period.

The sale is contingent on the offloaded business receiving a gambling licence, with completion expected to occur in the second quarter of 2022.

Gross assets of the business were valued at $71m as recently as June - $21m above the agreed sale price.

The firm decided to sell its bingo business after a strategic review, with the company looking to prioritise expansion into North America and reduce complexity from its overall offering.

Itai Pazner, chief executive of 888, said: "This strategic transaction will enable 888 to further increase its focus on its core platform and unified, scalable and proprietary technology, and grow our key product verticals of casino, sport and poker, as we continue in our mission to be one of the world's leading online betting and gaming businesses."

Shares in 888 remained flat following the announcement, with the company 0.07 per cent down on the FTSE 250 at close of play yesterday.

(c) 2021 City A.M., source Newspaper