Satellite broadcaster Sky has actually offered a majority stake in Sky Bet, valuing the at ₤ 800m.
The Leeds-based operation, that includes websites such as Sky Vegas and Sky Bingo, is being bought by personal equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the deal is completed next year and will retain a 20% stake.
Betting and gaming was not considered part of Sky's core company, a representative said.
The sale would permit it to focus on the "considerable growth chances" in pay television in the yohaig code 5 European markets it operated in, Sky said.
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The business recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its consumer base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, chief executive of Sky, stated the sale realised "substantial value" for shareholders.
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Shares in Sky rose 1.2% to 938p in London, valuing the company at just over ₤ 16bn. The stock has actually increased by nearly 20% in the previous 12 months.
'Successful property'
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Analysts at Citi said Sky might utilize some of the earnings to purchase out the remaining minority investors in Germany, including: "We think a sale of Sky Bet is a reasonable strategic move."
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Investec described Sky Bet is a "non-core however extremely effective possession" and stated earnings must assist the company pay for financial obligation, which was anticipated to be ₤ 6.3 bn for the 2015 fiscal year.
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CVC, which has actually had an interest in the betting and video gaming sector with stakes in business such as William Hill and IG Group, tried to purchase Betfair in 2015 in a ₤ 1bn deal. However, the two companies stopped working to agree on rate.
The personal equity group manages the Formula One motor racing company.
Sky Bet will stay in Leeds with all personnel moving to the brand-new entity.
Business produced net earnings of ₤ 182m in the year to June 30 and pre-tax revenues of ₤ 50m.
Sky has actually struck a long-term brand name licence agreement with Sky Bet.
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Sky Sells Majority Stake In Sky Bet
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