888 draws-up "big list" of acquisition targets

888 is running the rule over a “big list” of potential acquisition targets after record 2014 full-year revenues boosted both its cash balance and the operator’s access to additional financing, according to its chief operating officer Itai Frieberger.

Despite paying a special dividend, 888 increased its end of year cash balance by 45% $163m (£110m) and Frieberger told eGaming Review that money could be spent on a variety of companies ranging from small technology firms to businesses of a much larger scale.

Frieberger said 888 would look at four key elements, including whether a company would create additional profits to offset the “impact of PoC and VAT”, allow the firm to enter new markets, grow its product offering, or be strategic.

He acknowledged that one area 888 was looking at in particular was product, and didn’t rule out acquiring a sportsbook platform or operator.

However, Frieberger said it would be a “very difficult decision” to move away from current platform provider Kambi Sports Solutions, after sportsbook revenues increased by 115% last year.

“I don’t think we need to make an acquisition to continue the growth we have seen this last year,” Frieberger said.

“If we are going to buy something it’s probably not going to be on the scale of Kambi, it will likely be something slightly smaller than that,” he said.

“We will probably get it, develop it, make sure it is on-par with the rest of the industry, and then move into it,” he added.

888 was recently subject to a takeover bid from UK giant William Hill but rejected the £750m offer tabled for the firm after it failed to satisfy a major shareholder.

Whether a sale forms part of 888’s strategy is unclear and chief exec Brian Mattingley remained coy in the issue during the 2014 results presentation to investors, but did say 888 would “be part of the consolidation process”.