Disposal of Leidsa contract

RNS Number : 2503X

Sportech PLC

04 January 2022

 

Sportech PLC

("Sportech" or the "Group" or the "Company")

Disposal of Leidsa contract

Following previous announcements, Sportech is pleased to announce that it has signed and completed an agreement to sell its entire interest in its contract for the supply of lottery systems to Loteria Electrónica Internacional Dominicana S.A. ('Leidsa'), to Inspired Entertainment Inc ('Inspired') - a deal worth up to $14.5m to Sportech.

The consideration is payable in two parts; with $12.5m paid in cash on completion and up to a further $2m payable in royalty based cash revenues from the licensing of digital assets to Inspired that will support Liedsa's online retail platform.

In FY20, the Leidsa contract generated profits before taxation and extraordinary items of £1,355k. At 30 June 2021, the value of the gross assets associated with the Leidsa contract was £1,583k.

The Board are assessing the capital requirements of the Group and will provide an update on the use of proceeds from the sale in due course.

Andrew Lindley, CEO of Sportech, said:

"This deal represents Sportech's exit from the supply of lottery products managed on the Quantum system, which was acquired by Betmakers from the Company as part of the disposal of the Company's Tote business. This allows the Company's lottery division to concentrate exclusively on supplies managed on its wholly owned, cloud-based platform. The deal supports the future focus of the Company and we are also pleased to hand our valued customer over to the safe pair of hands that is Inspired Entertainment." 

Lorne Weil, Executive Chair of Inspired, said:

"The management of Inspired has a lengthy history with both Sportech and Leidsa and we are pleased that we were able to work together successfully to complete this transaction to the benefit of all parties."  Weil continued, "Leidsa is one of the largest and most successful lotteries in Latin America. Beyond the immediate potential in the Dominican Republic, we anticipate that the lottery systems platform can be further enhanced in order to accelerate the path of our strategic objectives in the worldwide online and retail lottery market."

Enquiries:
Sportech PLC  Andrew Lindley Nicola Rowlands	[e-mail] Chief Executive Officer Chief Financial Officer
Peel Hunt (NOMAD and broker to Sportech) George Sellar Andrew Clark Lalit Bose	Tel: [phone]

Sportech is a technology supplier and operator in the gambling market with two core businesses: A digital omni channel platform for gaming verticals including its own in-house lottery module as its B2B offering. In B2C, the Company operates Sports Bars and other venues in the State of Connecticut USA where it deploys its exclusive licence to offer pari-mutuel wagering in the State and a distribution agreement with the Connecticut Lottery Company to offer sports betting in the State. It also has the exclusive licence to operate pari-mutuel betting online in Connecticut, which it does under the MyWinners.com brand, and a general licence for pari-mutuel betting online across the wider USA under the 123Bet.com brand.

Inspired offers an expanding portfolio of content, technology, hardware and services for regulated gaming, betting, lottery, social and leisure operators across land-based and mobile channels around the world. The Company's gaming, virtual sports, interactive and leisure products appeal to a wide variety of players, creating new opportunities for operators to grow their revenue. The Company operates in approximately 35 jurisdictions worldwide, supplying gaming systems with associated terminals and content for approximately 50,000 gaming machines located in betting shops, pubs, gaming halls and other route operations; virtual sports products through more than 32,000 retail venues and various online websites; interactive games for 170+ websites; and a variety of amusement entertainment solutions with a total installed base of more than 16,000 terminals. Additional information can be found at  www.inseinc.com .

Leidsa is licensed by the Government of the Dominican Republic to operate lotteries for retail sale domestically and online across the country and has more than 2100 terrestrial outlets.

 

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