Private equity rivals Advent International and Apollo Global Management (NYSE:APO) will tussle for William Hill’s non-US assets, which Caesars Entertainment (NASDAQ:CZR) is inward the mental process of putting upwards for auction.
Apollo has long been viewed as a leading contender for William Hill’s High Street betting shops and the European online gaming stage business — among the trading operations Caesars is looking to divest. The common soldier equity firm’s interest inwards those assets dates plunk for to endure fall, when it tried to gain the UK bookie outright before losing out to Caesars.
However, the comer of Boston-based Advent onto the shot is unexampled and unexpected. Like Apollo, Advent has rich pockets. It’s the sixth-largest private equity shop in the man (Apollo is number four), import it can buoy easy brook Caesars’ marketing toll for William Hill’s international units. The auction is expected to lead off at $1.65 billion, but some analysts previously said it could stint to $2 billion.
Prior to intelligence of Advent’s interest in the William James Jerome Hill units emerging, Phoebus and 888 Holdings were widely seen as the leading contenders. 888 is already mired with in iGaming and online poker, but it’s trying to long pillow it’s sports betting exposure as well.
How Advent Fits In
Advent’s entry into the fray for the William Hill trading operations is a testament to the allurement of the matured UK sports wagering market place and growing opportunities in the European online gaming market.
However, dissimilar 888 and Apollo, Advent lacks unmediated gaming experience. Since its inception inwards 1989, the private equity browse invested inwards 376 enterprises in 42 countries. While plentitude of those companies are in the consumer cyclical category, none are casinos or sportsbooks.
Conversely, 888 is plain a gaming company, and Phoebus is an established player in the betting space, including inwards Europe. Last December, Gamenet Group S.p.A, an affiliate of the private equity shop, paid $1.5 one thousand million for International Game Technology’s (NYSE:IGT) Italian digital gaming, gaming machine, and sports wagering operations.
Apollo also recently purchased Great Canadian River Gaming and the Venetian, Palazzo and Sands Convention Center in Las Vegas. In other words, it has the gaming see UK regulators may need to insure in regards to the William Hill divestments. Advent does not.
Other Bidders
For now, it appears as though 888, Advent, and Phoebus are the primary feather bidders for the William James Jerome Hill assets. But with the auction off treat still inward its too soon innings, it’s possible other suitors emerge.
Reports paint a picture Entain Plc (OTC:GMVHY), which is already a heavyweight inward the UK betting market, could get involved. But some analysts insure that to a greater extent as an travail to gauge the time value of its Coral and Ladbrokes shops.
Betfred — another UK bookmaker — is rumored to have interest in the William J. J. Hill units. But to this point, that’s just now speculation. Owing to William Alfred Hawthorne controlling some well-known sports wagering brands in Sweden, there’s tattle that operators from that land could conjoin the summons party. But that’s also simply conjecture at this juncture.