Sportech agrees £83m sale of Football Pools
London-listed firm says deal will allow it to focus more on US operations
Sportech has announced the sale of the Football Pools to private equity firm OpCapita for a cash consideration of £83m.
The operator said the deal was an “attractive opportunity to realise the value of the Football Pools business” following its recent modernisation programme.
The London-listed firm has been trying to offload the Football Pools for almost two years, having seen previous deals with GVC, Netplay TV and Burlywood Capital fall through.
The latest agreement would allow it to focus its attention on the US, according to Sportech, where it supplies betting technology to the horseracing and sports industry.
The Sportech board said the Football Pools and the rest of the business did not have material synergies, and would benefit from the increased management focus achieved through separation.
Under the terms of the agreement, the Football Pools business will be acquired by FP Acquisitions Limited, a newly incorporated plc controlled by funds advised by OpCapita.
“The sale of The Football Pools Business represents an important strategic development for Sportech, having established a strong platform for growth, following completion of an extensive and successful modernisation programme,” Ian Penrose, Sportech chief executive, said.
“We have delivered our objective of stabilising earnings, and are delighted to have concluded this deal for Sportech’s shareholders, the Football Pools business and its employees.”
OpCapita, which specialises in the gaming and leisure sectors, said the Footbal Pools was an “ideal acquisition”.
“The business has a loyal customer base, providing a solid foundation on which to build, through new distribution channels, additional new games and fresh marketing,” OpCapita said in a statement.
The Football Pools is still planning to move into new premises in Liverpool city centre, a move that OpCapita supports.
John Von Spreckelsen, chairman of OpCapita, added: “We are delighted to be acquiring The Football Pools, which occupies a unique place in British culture.
“Sportech has successfully modernised the business and we look forward to realising its significant growth potential. As part of that growth strategy, we plan to ensure existing loyal customers continue to enjoy the game and bring The Football Pools, already loved by so many, to an even wider audience”.
“We look forward to partnering with Conleth Byrne and his team to help develop the company further and supporting the community with its commitment to charitable causes.”
The sale is pending approval from Sportech shareholders and is conditional on OpCapital obtaining the necessary licences from the Gambling Commission.
Sportech also reported its FY16 results this morning, with revenues down 2% to £98.6m.
Sportech shares were up 5% to 103p in early trading.