REG - Sportech PLC - Disposal of Leidsa contract

SportechAnnouncement

04/01/2022 07:00

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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                              enquiries@sportechplc.com

 Andrew Lindley                            Chief Executive Officer

 Nicola Rowlands                           Chief Financial Officer

 Peel Hunt (NOMAD and broker to Sportech)  Tel: +44 (0) 20 7418 8900

 George Sellar

 Andrew Clark

 Lalit Bose

 

 

 

 

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
(https://c212.net/c/link/?t=0&l=en&o=3397249-1&h=2951542087&u=http%3A%2F%2Fwww.inseinc.com%2F&a=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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