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£5.20 (€8.30) • ISSUE:119 • AUGUST 2014 • www.betting-business.co.uk

Henderson takes the reins at William Hill

IGT swallowed up by GTech in $6.4bn deal M&A

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William Hill has once again returned to its ‘boot room’ for a new CEO, with James Henderson stepping into some big shoes. ew William Hill CEO James Henderson has acknowledged that there will be a short-term hit to business once the point of consumption tax and changes to Australian regulations are implemented, but he is already making plans for the future. Henderson, who was named as Ralph Topping’s successor last month, has taken the big chair after 29 years at the company, his latest role being group director, operations, with oversight for the UK retail business, online, William Hill Australia and William Hill US. He commented: “My immediate priorities are to sit down with the team and discuss what the future looks like for William Hill, both from an organic point of view, building on the fantastic foundations we’ve got, but also looking at what opportunities might present themselves over the next two or three years, and making sure we’re in the right place to be able to take advantage of any opportunity that presents itself.

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“There are a number of things that will drive the business forward. I’m a great believer in multichannel activity. I don’t think anybody’s got it right, and we’ve already started on that road, but I absolutely fundamentally believe we can improve in that area.” Chairman Gareth Davis commented: “James’ established relationships, both with the strong cadre of senior managers and within the wider industry, ensure he is the best person both to sustain the momentum William Hill has achieved under Ralph and to progress further the digital and international diversification of the group.” Henderson hasn’t been slow to make some changes in William Hill’s Australian business, where he has recently been heavily involved. Tom Waterhouse has been installed as CEO of William Hill Australia, which encompasses the Sportingbet and Centrebet brands as well as tomwaterhouse.com. As part of this announcement, the firm has also made an early settlement

asino slots developer IGT has entered into a ‘definitive’ merger agreement with Italian gaming giant GTech S.p.A. in a deal worth US $4.7bn (£2.8bn) in cash and stock and the assumption of $1.7bn (£1.0bn) in net debt. IGT’s extyensive game library and manufacturing and operating capabilities combined with GTTech’s gaming operations, lottery technology and services, will create the world’s biggest endto-end gaming company. The transaction is currently expected to be completed in the first or second quarter of 2015. IGT CEO Patti Hart commented: “We are extremely pleased to reach a definitive merger agreement with GTTech as a result of our exploration of strategic alternatives to increase shareholder value. This outstanding combination of two global leaders redefines the future of the gaming industry. Together we are uniquely positioned to provide the industry’s broadest and most innovative portfolio of best-in-class products, solutions and services.” GTTech S.p.A. CEO Marco Sala said: “This transaction is transformational for our business. With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape. It will increase our global scale and with a full suite of offerings and robust customer relationships across the client spectrum, the new company will be uniquely positioned to take advantage of the ongoing convergence across global gaming market segments. Our expertise across these segments and greater ability to invest in R&D will improve player experiences and benefit our government and business clients.” While the deal has been struck remarkably quickly given the size of the two companies, there are still some issues to iron out, not least an investigation by shareholder rights attorneys at Robbins Arroyo LLP into whether the board of directors at IGT has undertaken a fair process to obtain maximum value and adequately compensate IGT shareholders.

NEW WILLIAM HILL CEO JAMES HENDERSON

of its acquisition of the Tom Waterhouse business, paying £2.8m in cash for an early earnout. The firm said settling the earn-out ahead of schedule further improves William Hill Australia’s operational and fiscal flexibility following the successful systems integration of tomwaterhouse.com into William Hill Australia in April 2014. Meanwhile, Ralph Topping is finally leaving the company he has worked at for over 44

years; his last six years in charge probably being the most successful in the bookmaker’s history. He commented: “As a ‘one company man’ I am naturally a big supporter of William Hill and its people, so I really wish James and the rest of our management team all the success in the world in continuing to take the company forward.” Henderson added: “Under Ralph as chief executive, the group is in the best competitive shape I have ever known and he has created, in my view, an unrivalled team with an outstanding track record. Whilst we face challenges as an industry, there are also plenty of opportunities to keep strengthening William Hill by further diversifying our revenues and continuing to build a responsible, sustainable business.”

www.microgaming.co.uk


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