SPORTECH PLC ACQUIRES ZETTERS
Sportech PLC
14 August 2002
SPORTECH PLC ACQUIRES ZETTERS FOOTBALL POOLS
Sportech plc, ('Sportech' or 'the Company'), the home gaming company and owner
of the Littlewoods gaming and betting brands, today announces the acquisition of
the Football Pools business of Zetters International Pools Ltd, a subsidiary of
Zetters Group plc, for £1.35m.
As at completion it is estimated that the net assets of the Zetters Football
Pools business will be £0.2m, including £0.7m of cash. Zetters Football Pools
generated operating profit of £0.6m, before exceptional items, on turnover of
£6.1m in the 12 month period to March 31st 2002. Sportech plc is to fund the
purchase, which is payable in cash, from existing banking facilities.
The acquisition further consolidates the Pools business in the UK, and brings
60,000 new home gamers into the Sportech fold. Sportech will retain the Zetters
branded offer, providing a greater choice of complementary products to its
customers and the opportunity to cross-sell Sportech's portfolio of gaming
products to an enlarged customer base. Sportech will seek to achieve operational
synergies between its existing Littlewoods Football Pools operation and the
Zetters Football Pools business.
In addition, Sportech, through its subsidiary Littlewoods Promotions Limited,
will enter into a separate agreement with IFX Ltd, the principal trading
subsidiary of Zetters Group plc, whereby Littlewoods Bet Direct sports betting
service will be promoted to IFX's 10,000 customers, and IFX's financial
spread-betting and fixed odds products will be promoted to Littlewoods Bet
Direct's 260,000 customers.
Colin McGill, Managing Director of Sportech comments:
'Zetters Football Pools business is a natural fit within Sportech's stable of
gaming and betting products. We are confident that the acquisition of Zetters
Football Pools and the joint marketing agreement with IFX will deliver value to
shareholders and, by increasing our customer base, offers further opportunity to
build revenues in the future. We welcome all Zetters Football Pools customers
and are sure that we will be able to offer them an ever increasing range of
innovative and entertaining gaming and betting opportunities.'
Further information will be available within the Sportech Interim Announcement
to be issued on Monday, 16 September 2002.
- ends -
Enquiries
Sportech plc
* Suzanne Judge, Corporate Communications, Sportech, 0151 288 3059
* Charles Reynolds, Bell Pottinger Financial, 020 7861 3232
Zetters Group plc
* Graham Wellesley, Chief Executive, +44 20 7890 8990
* Peter Curtain / Julian Bosdet, Bankside, +44 20 7444 4140 / +44 7733 301707
Notes to editors
* Sportech plc is the UK's leading home gaming company, providing a variety of
betting and gaming opportunities to customers through its wholly owned portfolio
of Littlewoods betting and gaming brands. Sportech is developing its business
through the utilisation of new channels of distribution to bring more games to
more players in the home, capitalising on the strength of the Littlewoods brand,
namely its association with the values of trust and integrity.
* Zetters Group plc, which on May 30 announced its intention to change its name
to IFX Group plc, is a leading financial services company focused on the
international financial markets. On May 20 it acquired Financial Spreads, the
financial spread-betting company. Zetters' pools business is not considered a
core business and the directors have no intention of expanding the company's
operations in the sporting field.
This information is provided by RNS
The company news service from the London Stock Exchange