William Hill has up'd the ante with confirmation of a partnership with the online poker giant Playtech ipoker network.

Effective immediately, the company has appointed Henry Birch as CEO of William Hill Online. Mr. Birch was previously Chief Executive of Leisure & Gaming plc.
 
"This transaction is a transformational step for William Hill consistent with our stated strategy to increase online gaming and international earnings," said Ralph Topping, CEO of William Hill plc. "William Hill Online will be the leading European online gaming and sports betting business and the clear online leader amongst UK land based gaming and betting operators."

The newly formed business has also signed a five year online poker and casino software agreement with Playtech to replace the existing CryptoLogic platform, with an option to move into other product areas in the future. The move to Playtech's iPoker network will give William Hill more than ten times the level of player liquidity than it currently has.

William Hill plc has said that it will combine certain Playtech affiliates with its interactive business to form William Hill Online, a pan-European online gaming and sports betting business in which Playtech will be a shareholder.
 
As part of the transaction, Playtech will acquire various online gaming businesses, marketing assets and contracts for up to $250 million in cash, in return for a 29% ownership interest in William Hill online.
 

William Hill says the business, which it will control and operate as a consolidated subsidiary, will generated pro forma 2008 net revenues in the region of £190 million with EBITA of £75 million. The transaction is expected to be completed in full in January 2009 and to be earnings positive in the first full year of ownership. Integration is expected to be completed by Q3 2009.
 
Under the terms of the agreement, Playtech's ownership can be increased from 29% to 32% on meeting certain conditions, while William Hill retains an option to acquire Playtech's interest on an independent fair value basis after four and six years.
 

William Hill's announcment sent shares of William Hill plc (LSE:WMH) soaring by a climb of 20.57% - Not all doom and glomm in the city!

William Hill certainly are living the dream - Runing their Caribbean cruise and joining with one of the most prominent forces in online poker they will now be able to offer their players the same access to the Big money tournaments and online qualifiers

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