Sportech ends Standard General buy-out talks
Sportech has announced that discussions have broken down between the sports betting supplier and Standard General over a potential company buy-out.
Early last month, Sportech rejected two offers from the New York-based investment firm. One of the offers valued Sportech at 25p per share, while the other was slightly higher at 28.5p per share.
In a statement released at the time, Sportech’s board said it believed the offer “fundamentally undervalues Sportech’s business and prospects.”
The sports betting technology company gave Standard General until 3 December to make another offer, with an option to extend this timeframe if necessary.
Sportech has now announced that it has “terminated talks with Standard General.” In a statement, the company said it “concluded that the proposal did not adequately value the businesses and prospects of Sportech.”
Earlier this month, Sportech reached an agreement with BetMakers for the sale of its Tote and digital business for $41.3m.
Through the deal, the Australian-based gaming technology supplier agreed to purchase Sportech’s US, UK and European racing and digital assets on a cash-free, debt-free basis. BetMakers said it hoped the deal would accelerate its international growth plans.
“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,” said Todd Buckingham, BetMakers managing director.
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