Sportech confirms Contagious Gaming acquisition talks
London-based firm confirms proposal from Toronto-based gaming and software firm to acquire entire busine
Sportech this afternoon confirmed it has received a proposal from Toronto-based gaming and software supplier Contagious Gaming to acquire the firm in its entirety. [private]
In a statement Sportech said an offer from Contagious Gaming, if made, would be above the London-based firm’s current share price of 62.63p as of 13 August.
The deal, if approved by Sportech shareholders, would compromise a majority in cash and the remaining balance in new Contagious Gaming shares.
Sportech said its shareholders would receive approximately half of the net proceeds in the event that the firm is successful in its ongoing £97m VAT repayment claim over its Spot the Ball game.
Back in May Contagious Gaming announced it had acquired Germany and Isle of Man-based sportsbook software suppliers Digitote in a €5m (£3.6m) deal.
The firm is focused on deploying a lottery-style sports betting platform in the UK, as well as its digital instant lottery platform in the North America market.
The news comes shortly after Sportech confirmed it had rejected a £75m offer to acquire its Football Pools business from an unnamed bidder, with the firm believed to be targeting a £100m sale price.
Sportech has also recently sold its 50% stake in its SNG Interactive JV back to NYX Interactive for CA$23m, and has led an investment fund in the acquisition of daily fantasy sports operator DraftDay.
Sportech’s share price had risen almost 10% to 68.66p at the time of writing.