betmakers leads e34m pursuit of sportech to super charge its global outlookby Joker 01.12.2020 0 comments
BetMakers Technology Group has this morning communicated that it has reached a ‘binding agreement’ with the board of Sportech Plc to acquire the company for AUS $56.2 (€34m) on a cash-free / debt-free basis.
The ASX-listed technology group will acquire all Sportech US, European and UK assets and IPs, establishing the company as the leading global supplier for racing and in-stadia wagering systems.
Updating investors, BetMakers brands the acquisition as a transformative deal for its financial and global growth prospects, acquiring Sportech’s Americas Tote Business, US digital units, UK and European Tote partnerships and flagship Quantum Tote wagering solution.
The transaction notice highlights the deal’s ‘instant value’ capacity, in which a combination of the businesses would have generated full-year 2020 revenues of AUS $56 million and EBITDA result of $7.7 million (€4.5m).
BetMakers confirms that it will pursue an AUS $50 million (€30m) underwritten placement to fund the deal, in which terms have been accepted by the Sportech board to be presented to shareholders of the LSE business at a scheduled meeting set of 21 December.
Should the deal proceed, BetMakers stated that it would move to secure ‘instantly available’ co-synergies and cross-selling opportunities to establish the firm’s leading Tote technology provider across the US , Europe and Asia.
BetMakers’ Managing Director Todd Buckingham said: “This Acquisition will super charge our entry into the U.S. and position the Company for substantial growth on the back of the emerging wagering opportunities in U.S. racing, including Fixed Odds, where we believe we are well placed.
“The Acquisition would give us a meaningful presence in the US, including in 36 of the States and across more than 200 venues, 25 digital outlets and 9000 betting terminals”.
“It will also greatly expand our global customer base across the UK , Europe and Asia and provides us with an opportunity to expand our product offering at scale in these and other regions”.