BetMakers Technology Group has announced a binding agreement to acquire Sportech’s global Tote and digital business for AU$56.2m ($41.3m)
The Australian-based gaming technology supplier will purchase the sports betting company’s US, UK and European racing and digital assets on a cash-free, debt-free basis, aimed at accelerating BetMakers’ international growth plans.
The deal, which BetMakers considers “transformational for the company’s financial and growth prospects” includes Sportech’s Americas Tote business, which provides betting solutions, hardware and operational services to more than 200 race track, casino and betting venues.
The acquired assets also include Sportech’s Americas Digital Business which provides white-label betting solutions, as well as its UK and European Tote Business, to provide parimutuel technology and services to horse racing betting operators worldwide.
The acquisition will be funded by a AU$50m fully underwritten placement and the deal is conditional to Sportech shareholder approval, with its board agreeing to recommend the transaction. The acquisition is due to be put to a vote in the week commencing 21 December.
BetMakers managing director Todd Buckingham, said: “This acquisition will supercharge our entry into the US and position the Company for substantial growth on the back of the emerging wagering opportunities in US racing, including Fixed Odds, where we believe we are well placed.
“It will also greatly expand our global customer base across the UK, Europe and Asia and provides us with an opportunity to expand our product offering at scale in these and other regions.
“The Acquisition of Sportech assets and the momentum we are seeing in the BetMakers’ business during this current financial year places the Company in an extremely strong growth position.”