Sportech sells lottery interest for up to $14.5 mln
Sportech has signed and completed an agreement to sell its entire interest in its contract for the supply of lottery systems to Loteria Electrónica Internacional Dominicana S.A. to Inspired Entertainment a deal worth up to $14.5m to Sportech.
The consideration is payable in two parts; with $12.5m paid in cash on completion and up to a further $2m payable in royalty based cash revenues from the licensing of digital assets to Inspired that will support Liedsa’s online retail platform.
In FY20, the Leidsa contract generated profits before taxation and extraordinary items of £1,355k. At 30 June 2021, the value of the gross assets associated with the Leidsa contract was £1,583k.
The Board are assessing the capital requirements of the Group and will provide an update on the use of proceeds from the sale in due course.
Andrew Lindley, CEO of Sportech, said: “This deal represents Sportech’s exit from the supply of lottery products managed on the Quantum system, which was acquired by Betmakers from the Company as part of the disposal of the Company’s Tote business. This allows the Company’s lottery division to concentrate exclusively on supplies managed on its wholly owned, cloud-based platform. The deal supports the future focus of the Company and we are also pleased to hand our valued customer over to the safe pair of hands that is Inspired Entertainment.”
Lorne Weil, Executive Chair of Inspired, said: “The management of Inspired has a lengthy history with both Sportech and Leidsa and we are pleased that we were able to work together successfully to complete this transaction to the benefit of all parties.” Weil continued, “Leidsa is one of the largest and most successful lotteries in Latin America. Beyond the immediate potential in the Dominican Republic, we anticipate that the lottery systems platform can be further enhanced in order to accelerate the path of our strategic objectives in the worldwide online and retail lottery market.”