The multimillion-dollar deal will see the UK-based betting group transfer its agreement with Leidsa for the supply of lottery systems to Inspired.
Payment will be split into two parts. $12.5m will be paid in cash on completion, while a further $2m is payable in royalty-based cash revenues from the licensing of digital assets to Inspired that will support Leidsa’s online retail platform.
This comes after Australian firm BetMakers acquired Sportech’s racing, tote and digital assets. Andrew Lindley, Chief Exec of the London-listed Sportech, commented: “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.”
This announcement comes off the back of a strong trading year for Sportech, which saw its share price jump by more than 40% in 2021.
“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,” said Lorne Weil, Inspired’s Executive Chair.
“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.”