Bristol-based betting technology firm Sportech has entered into a conditional agreement to sell its Global Tote business to Betmakers Technology Group for £30.9million.
The Global Tote business provides tech and services to gaming businesses around the world, but mainly to the global horse racing betting industry.
Its systems processed around US$12.2billion in betting handle in the financial year ending December 31, 2019, for clients in 37 countries.
The deal is conditional on approval of the disposal by Sportech's shareholders and BetMakers receiving relevant regulatory approvals prior to completion, Sportech said.
BetMakers said it would keep on all staff working in the Global Tote business and make "significant" investments into the business.
Sportech’s board said it expected the disposal to complete in the first half of 2021, subject to the conditions being satisfied.
The news comes just weeks after Sportech confirmed it had rejected multiple takeover offers from US hedge fund Standard General.
For the six months ending June 30, 2020, the Global Tote business generated revenue of £12.0million, according to Sportech, adjusted EBITDA of £1.6million and a loss before tax of £1.2million. It also had gross assets of £29.3million.
Sportech's chief executive Richard McGuire said: "We previously set out that one of the group's transformation objectives included evaluating and executing material corporate opportunities which deliver tangible investor returns.
“The board believe this transaction very much achieves that objective. In addition to the range of opportunities which the net proceeds are expected to provide to the group, we believe the BetMakers product suite will further enhance the existing Sportech platform providing additional opportunities for global gaming clients."
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BetMakers chief executive, Todd Buckingham, said: “BetMakers' proposed acquisition of Sportech's Global Tote business is part of our company's international expansion plans to help power the excitement, growth and sustainability of horse racing globally.
“We consider the Sportech name to be synonymous with racing around the world, and we believe that BetMakers has the complementary knowledge and assets - and shared values built around a passion for racing - to help deliver ongoing success for clients, partners and all stakeholders in the racing industry.”
Mr Buckingham added: “We are excited not only to be a partner that sustains racing through innovation in technology, services and solutions in the existing Sportech footprint, but also to pursue the growth opportunities that are being presented as new regulated markets open up such as the US."
