Contagious Gaming, a developer of software solutions for the lottery and gaming sectors, has struck a deal to acquire sportsbook software firm Digitote in a deal worth €5 million ($5.6 million).
The total consideration will be paid through a combination of common shares of Contagious, cash and a vendor take-back.
Contagious noted that any cash payment of the purchase price payable on closing will be funded with cash on hand.
Digitote provides commercial-grade sports betting and horse racing technology, hardware and support services to various operators around Europe.
The firm’s Xturf business-to-business software platform currently manages the sportsbook operations of a number of major operators such as Digibet and Betcenter.
Peter Glancy, chief executive officer and director of Contagious, said the deal will enable the company to utilise Digitote’s technologies in order to expand its own sports betting offering to customers.
“The acquisition of Digitote expands Contagious Gaming’s sports betting offering by enabling us to provide our customers with a multi-channel live in-play and pre-match fixed odds sports betting platform alongside our proprietary in-play pari-mutuel Goal Time offering,” Glancy said.
“Digitote’s software has a 30-year history as an extremely robust sports betting platform with a proven track record of handling over $10 billion of web, mobile and land-based wagers throughout Europe.”
As a result of the Digitote deal, Contagious has confirmed the cancellation of its previously announced acquisition of Chelbis Company.
As reported by iGaming Business, Contagious said in January that it had entered into a definitive share purchase agreement to acquire all the issued and outstanding securities of the UK online bingo provider.
However, the company has said in a statement the pending acquisition remained subject to a number of closing conditions in favour of Contagious and Chelbis did not satisfy these requirements.
Contagious added: “The company was unable to come to a revised agreement satisfactory to Contagious Gaming and thus has made the decision to terminate the acquisition of Chelbis.”
source : www.igamingbusiness.com