Sale of Bump Worldwide

RNS Number : 4597N

Sportech PLC

01 February 2021

 

For Immediate Release

1 February 2021

Sportech PLC

('Sportech' or the 'Group')

Sale of Bump Worldwide Inc.

Sportech (LSE: SPO), an international betting technology business, is pleased to announce that it has entered into a conditional agreement to sell its Bump Worldwide Inc. ('Bump') business to Canadian Bank Note Company, Limited ('Canadian Banknote' or 'CBN') of Ontario, Canada for gross consideration of CN$10 million (c.£5.7 million), which includes a CN$2 million (c.£1.1 million) earn out related to performance in 2022.

The sale is anticipated to complete during Q2-2021 and net proceeds will create potential further investment capital for the Group's Connecticut sports betting ambitions and retail gaming business.

Bump Worldwide, Inc., marketed as Bump 50:50, provides technologies and services enabling clients to offer digital raffle fundraising programmes in stadiums and online. Most Bump clients are foundations affiliated with professional and collegiate sports teams, including some of the most successful sports franchises in North America.

CBN operates across four key market areas including Lottery and Charitable Gaming, where its clients include the Ottawa Senators, Toronto Maple Leafs, Toronto Raptors and Toronto Blue Jays. As such, they are ideally positioned to continue delivery of a superior client service and innovative product suite.

Richard McGuire, Chief Executive of Sportech, said: "We are immensely proud of the progress the Bump management team have achieved in recent years and believe the acquisition by CBN will provide additional opportunities and a broader product suite ultimately leading to further innovation, benefitting all clients, within the charitable gaming space."

Craig Bascombe, President of Lottery Systems and CFO of Canadian Banknote said: "The acquisition of Bump 50:50 is very strategic for CBN. The organisational cultures are remarkably similar so we are confident it will be seamless for customers of both organisations.  We are anxious to complete this transaction as soon as possible."

In the year ended 31 December 2019, Bump generated a loss before tax of £0.15 million. As at 30 June 2020, Bump had gross assets of £0.85 million.

The disposal constitutes a Class 2 transaction under the Financial Conduct Authority's Listing Rules.

Publication on website

A copy of this announcement is also available on the Group's website at www.sportechplc.com .

- Ends -

For further information, please contact:

Sportech PLC Giles Vardey, Chairman Richard McGuire, Chief Executive Officer Tom Hearne, Chief Financial Officer	Tel: [phone]
Peel Hunt LLP - Corporate Broker George Sellar / Andrew Clark / Will Bell	Tel: [phone]
Buchanan Henry Harrison-Topham / Jamie Hooper / George Beale [e-mail]	Tel: [phone]

Notes to Editors:

About Sportech

Sportech PLC, an international betting technology business, delivers solutions and services for some of the world's best-known gaming companies, sports teams, racetracks, casinos and lottery clients as well as owning and operating its own gaming venues in Connecticut under exclusive licences.

The Group focuses on highly regulated markets worldwide. It has more than 29,000 betting terminals deployed to over 400 clients in 38 countries. Its global systems process US$12.3 billion in betting handle annually. In the US, it operates across 36 states. The Group has invested over US$60 million in the last five years in the successful expansion of its US gaming Venues, the diversification into raffle and lottery gaming platforms, and in developing its technology services, resulting in its proprietary Quantum™ System being the most widely deployed pari-mutuel betting system globally.

About Canadian Bank Note

Canadian Bank Note dates back to 1897, when it started out as Canada's trusted security printer. Today, we apply the highest standards to the design, development and integration of secure, leading-edge technology for governments across the globe. Together, we have deployed complex solutions that secure borders, protect national currencies and generate revenue for government social initiatives.

CBN has a proven track record in turning paper-based charitable games into profitable, popular digital properties. Located in professional sports venues and community gaming centres, we offer an enhanced, secure and fun way for fans to participate and support local good causes like children's hospitals, amateur athletics and educational initiatives.

 

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