Satellite broadcaster Sky has sold a bulk stake in Sky Bet, valuing the betting operation at ₤ 800m.
The Leeds-based operation, which consists of websites such as Sky Vegas and Sky Bingo, is being purchased by private equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the offer is completed next year and will retain a 20% stake.
Betting and video gaming was not regarded as part of Sky's core business, a spokesperson stated.
The sale would permit it to focus on the "substantial growth chances" in pay-tv in the 5 European markets it operated in, Sky stated.
The company just recently finished the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its client base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, chief executive of Sky, said the sale realised "substantial worth" for investors.
Shares in Sky rose 1.2% to 938p in London, valuing the business at simply over ₤ 16bn. The stock has actually increased by practically 20% in the yohaig code past 12 months.
'Successful possession'
Analysts at Citi said Sky could use some of the profits to buy out the staying minority investors in Germany, including: "We believe a sale of Sky Bet is a practical tactical relocation."
Investec described Sky Bet is a "non-core however extremely effective property" and said proceeds should assist the business pay down debt, which was expected to be ₤ 6.3 bn for the 2015 fiscal year.
CVC, which has actually had an interest in the yohaig code betting 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 2 business failed to agree on cost.
The personal equity group controls the Formula One motor racing business.
Sky Bet will stay in Leeds with all staff transferring to the new entity.
The company produced net revenues of ₤ 182m in the year to June 30 and pre-tax revenues of ₤ 50m.
Sky has actually struck a long-term brand licence contract with Sky Bet.
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