Satellite broadcaster Sky has offered a bulk stake in Sky Bet, valuing the betting operation at ₤ 800m.
The Leeds-based operation, that 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 completed next year and will maintain a 20% stake.
Betting and video gaming was not considered part of Sky's core company, a spokesperson said.
The sale would permit it to concentrate on the "significant development chances" in pay tv in the five European markets it operated in, Sky stated.
The company just recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its consumer base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, primary executive of Sky, stated the sale realised "considerable value" for investors.
Shares in Sky increased 1.2% to 938p in London, valuing the business at simply over ₤ 16bn. The stock has increased by nearly 20% in the past 12 months.
'Successful property'
Analysts at Citi stated Sky could use some of the profits to purchase out the remaining minority shareholders in Germany, adding: "We think a sale of Sky Bet is a practical strategic move."
Investec explained Sky Bet is a "non-core but extremely successful property" and said proceeds need to assist the company pay down debt, 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 business such as William Hill and IG Group, shopped Betfair last year in a ₤ 1bn deal. However, the 2 business failed to settle on price.
The private equity group controls the Formula One motor racing organization.
Sky Bet will remain in Leeds with all staff moving to the brand-new entity.
The company generated net incomes of ₤ 182m in the year to June 30 and pre-tax earnings of ₤ 50m.
Sky has struck a long-lasting brand licence agreement with Sky Bet.
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