London-listed William Hill has recently made a bid for MRG worth £242m.
MRG has historically delivered strong revenue growth across all regions in which the company operates and that was more than enough a reason for William Hill to pursue the opportunity to buy this company.
MRG’s trading has remained strong with revenue increasing 51% year-on-year in third quarter 2018. The annual growth between 2015 and 2017 was at 23% rate while MRG’s geographic revenue in the third quarter was 40% in Western Europe, 36% in the Nordics, 21% in Central, Eastern and Southern Europe and 3% in other regions.
William Hill overall online revenue was between 42-47% in the first half of the year while the revenue from the outside of UK rose from 14% to 21%. The company strongly believes compound business will take leading role in sustainability and social responsibility.
By acquiring an online-only business, William Hill said, it would be able to reduce its exposure to the UK market and increase its share of online and international revenue and profits.
“This proposed acquisition accelerates the diversification of William Hill – immediately making us a more digital and more international business,” William Hill chief executive Philip Bowcock said.
“William Hill will move from a single brand to a suite of brands that can maximise growth opportunities moving forward in new and existing markets” he added.
William Hill has unveiled reasons behind the offer to MRG shareholders explaining that the acquisition will give them access to international hub in Malta from which they will drive international growth together with market entry expertise in a number of European countries.
MRG holds remote gambling licenses in Denmark, Italy, Latvia, Malta, Great Britain and Ireland and expects to obtain Swedish licenses by the end of the year so the strong brands including Mr Green and Redbet will add more growth to the geographical portfolio.
Ulrik Bengtsson, William Hill’s Chief Digital Officer, who has a vast experience in the field from his previous work at Betsson, will lead the integration process of MRG within the William Hill Group.
Given that the acceptance of this offer depends on approvals from authorities in various jurisdictions, the acceptance period end on 17 January.