The beginning of the week saw Australia-based BetMakers Technology Group reveal that it has entered into a conditional agreement over the acquisition of the Global Tote business of Sportech. Reportedly, the total cash consideration of the deal is estimated at £30.9 million.
The online gambling and entertainment operator shared that it is still in process of reviewing and considering all options and there is no certainty that the discussed Global Tote business’ sale will proceed or such a sale would take place under the terms that are currently being considered.
Currently, the Global Tote business provides international horse race betting operators with pari-mutuel technology and services. It also includes the Americas Tote business that currently provides betting solutions, as well as hardware and operational services to over 200 casinos, betting venues and racetracks run by more than 50 companies in the US, Latin America and Canada.
Apart from that, the assets that are being subject of the deal also include the North America-facing white label online gambling solutions business of Sportech that currently has more than 25 customers there. Furthermore, the European and British Tote operations and the company’s Quantum Tote betting engine are also included in the deal.
According to reports, the business processed stakes of customers across 37 countries that were worth $12.2 billion in the year that ended on December 31st, 2019. The total revenue generated by the Global Tote business over the period amounted to £30.8 million, while the adjusted earnings were estimated at £5.6 million. For the first six months of 2020 – the period that ended on June 30th, 2020 – the business reported £12-million revenue, as well as adjusted earnings before interest, tax, depreciation and amortisation of £1.6 million. The Global Tote business also reported a £1.2- million loss before tax for the same period.
Global Tote Business Being Sold for Almost £31 Million
If the two companies proceed with the discussed acquisition deal and complete the sale of the Global Tote business, the remaining business of Sportech would include the Lottery business, the Venues business and the Bump 50:50 business. More details on the matter would be revealed by Sportech in a further statement that is to be released if and when the company decides.
For the time being, the announced purchase price is £30.9 million but the final amount is subject to an adjustment in order for the parties to be sure that it reflects the business’ level of working capital. A total of 20% of this price would have to be paid after the shareholders of Sportech give their approval of the deal, with the remaining amount of the deals’ price set to be paid in cash. The company’s shareholders are set to have their vote on the transaction in the week starting December 21st, 2020.
Todd Buckingham, the managing director of BetMaker, revealed that the discussed takeover deal would be carried out as part of his company’s international expansion plans at a time when it is seeking further sustainability and growth of its horse racing operations on a global scale. Mr Buckingham further noted that BetMakers intends to retain all employees working for the business that is subject to the sale and promised that the company would make considerable investments in its operations in order to make sure it goes in line with the fast-developing sports betting sector.
- Author
Olivia Cole
