Sportech has announced the sale of its lottery supply contract with Loteria Electronica International Dominicana S.A. (Leidsa) to Inspired Entertainment for a total consideration of $14.5 million.
The transaction will see Inspired take on responsibility for the provision of all lottery support services to Leidsa from LSE-registered betting and gaming tech firm Sportech, in what the latter firm lauds as a successful contract.
Sportech’s debut transaction of the year follows on from a strong trading performance in 2021, having completed a public listing on the London Stock Exchange and recording revenues of £13.5 million in its H1 report, up 70% on corresponding 2020 results of £7.9 million.
Andrew Lindley, Sportech CEO, 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.”
The consideration will be payable in two-parts, with $12.5 million paid in cash upon completion of the transaction whilst a further $2 million will be payable in royalty based cash revenues from the licensing of digital assets to Inspired, the latter conducted with the goal of supporting Liedsa’s online retail platform.
Sportech further detailed that its board is ‘assessing the capital requirements of the group’, with plans to provide an update on the issue of proceeds from the sale of the contract ‘in due course’.
“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, Executive Chair of Inspired.
“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.”