Sportech revealed that the sale of its interest in Loteria Electronica International Dominicana (LEIDSA, or the Dominican Republic lottery) to Inspired Entertainment has been completed. As confirmed by the company’s CEO, the control over Sportech’s valued customer has already been transferred to the safe hands of Inspired Entertainment.
The takeover transaction was estimated at $14.5 million and resulted in a more than 5% increase of the UK-based online gambling and entertainment operator’s value immediately. As revealed by Sportech, out of the overall sum, Inspired Entertainment is set to pay $12.5 million in cash and the remaining $2 million in royalties and digital asset licensing.
In 2020, the Dominican Republic lottery brought Sportech approximately $1.9 million. By June this year, the overall assets of the group associated with the contracts were worth $2.17 million. So far, the acquisition deal of the Dominican Republic lottery is considered an important transaction for the future of the industry, especially considering the lucrative nature of the assets that are being acquired by Inspired Entertainment.
The CEO of Sportech, Andrew Lindley, has explained that the deal represented the exodus of the online gambling and entertainment company from the supply of lottery products managed on the Quantum system, which Betmakers had purchased from the operator as part of the latter’s decision to dispose of its Tote business. As Mr Lindley explained, the move will make it possible for the lottery unit of Sportech to focus primarily on supplies managed on its wholly-owned, cloud-based platform. Sportech’s boss further noted that the takeover deal fully complies with the future focus on Sportech.
Inspired Entertainment Seeks Further Expansion in Latin America and Lottery System Platforms Enhancement
The deal is expected to be beneficial not only for Sportech. On the other hand, Inspired Entertainment was glad to receive the interest in the Dominican Republic lottery assets, and the completion of the deal would now make it able to once again negotiate with Sportech.
Lorne Weil, who occupies the position of the executive chairman of Inspired Entertainment, reminded that the company’s management had an extensive connection with both Sportech and the lottery. He shared that he was really happy with the fact that all parties worked in harmony in order to make the completion of the transaction smooth.
On the other hand, the LEIDSA is currently one of the largest and most successful lotteries in the region of Latin America. Keeping that in mind, Mr Weil is gladly expecting to see all of the prospects of Inspired Entertainment’s expansion into the region. As Inspired Entertainment’s executive chairman shared, the company intends to seek further enhancement of its lottery system platforms and remains focused on future expansion on the global retail and online lottery market.
The year 2021 has been an eventful one for Sportech. In the summer, the gambling operator made a transition from the London Stock Exchange (LSE) to the London AIM because it believed that the smaller market would do a better job for its operations. Sportech initiated a downsizing in August 2021, with the move resulting in some changes to the company’s leadership that saw the operator part ways with its former chief executive officer Richard McGuire and its former chief financial officer Tom Hearne.
- Author
Olivia Cole
