Satellite broadcaster Sky has sold a bulk stake in Sky Bet, valuing the betting operation at ₤ 800m.
The Leeds-based operation, that includes sites 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 gaming was not considered part of Sky's core business, a spokesperson said.
The sale would enable it to concentrate on the "considerable growth opportunities" in pay television in the five European markets it operated in, Sky said.
The company just recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its customer base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, chief executive of Sky, stated the sale realised "substantial value" for investors.
Shares in Sky increased 1.2% to 938p in London, valuing the company at simply over ₤ 16bn. The stock has actually risen by nearly 20% in the previous 12 months.
'Successful property'
Analysts at Citi said Sky could utilize a few of the yohaig code proceeds to buy out the remaining minority investors in Germany, adding: "We believe a sale of Sky Bet is a sensible strategic move."
Investec explained Sky Bet is a "non-core but highly effective asset" and said profits need to help the business pay for financial obligation, which was anticipated to be ₤ 6.3 bn for the 2015 financial 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 business failed to agree on rate.
The private equity group controls the Formula One motor racing service.
Sky Bet will stay in Leeds with all staff transferring to the new entity.
The service produced net incomes of ₤ 182m in the year to June 30 and pre-tax revenues of ₤ 50m.
Sky has struck a long-term brand name licence agreement with Sky Bet.
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