Sportech sells Dutch tote for €3.25m

Business News

The Board of Sportech announces that it has agreed terms with RBP Luxembourg (‘RBP’) regarding the proposed sale of Sportech Racing BV for a total cash consideration of up to €3.25 million on a debt free/cash free basis (the ‘Proposed Disposal’).

Sportech Racing BV is the Company’s Netherlands business, which obtained a new five-year licence in June 2017 for the exclusive rights to carry out tote betting on horseracing in the Netherlands.  This licence is operated in nine betting shops, 38 other outlets with point-of-sale terminals and online through the Company’s website

 The Proposed Disposal is subject to, amongst other things, local regulatory consent and the transfer of various agreements and licences (on market terms) from certain Sportech group entities to Sportech Racing BV.  €2.8 million of the consideration will be payable at closing and up to a further €450,000 will be payable in January 2019, subject to certain agreed performance conditions being met.  The transaction is expected to close in H2 2018.

Andrew Gaughan, CEO of Sportech, said: “The Proposed Disposal represents an attractive opportunity to realise value following the successful licence extension and restructuring of the business by management as we increase focus on US growth opportunities.  Sportech will continue to provide RBP, under a long term contract, its ongoing tote services and also has a strong working relationship with them focused on developing and selling their French racing pools into our vast footprint of global customers.”