Satellite broadcaster Sky has sold a bulk stake in Sky Bet, valuing the yohaig code gambling operation at ₤ 800m.
The Leeds-based operation, which 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 finished next year and will retain a 20% stake.
Betting and video gaming was not regarded as part of Sky's core business, a spokesperson said.
The sale would allow it to focus on the "considerable development chances" in pay-tv in the 5 European markets it ran in, Sky said.
The company recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its customer base to 20 million across Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, primary executive of Sky, stated the sale realised "substantial worth" for shareholders.
Shares in Sky rose 1.2% to 938p in London, valuing the company at just over ₤ 16bn. the yohaig code stock has actually increased by practically 20% in the past 12 months.
'Successful possession'
Analysts at Citi stated Sky might utilize some of the proceeds to buy out the remaining minority shareholders in Germany, adding: "We believe a sale of Sky Bet is a sensible tactical relocation."
Investec described Sky Bet is a "non-core but extremely effective property" and said earnings should help the company pay for financial obligation, which was anticipated to be ₤ 6.3 bn for the 2015 fiscal year.
CVC, which has actually had an interest in the wagering and video gaming sector with stakes in companies such as William Hill and IG Group, shopped Betfair last year in a ₤ 1bn bet9ja's welcome offer. However, the two companies stopped working to agree on rate.
The personal equity group controls the yohaig code Formula One motor racing business.
Sky Bet will stay in Leeds with all personnel moving to the yohaig code new entity.
The service generated net incomes of ₤ 182m in the year to June 30 and pre-tax profits of ₤ 50m.
Sky has actually struck a long-lasting brand licence agreement with Sky Bet.
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