Sportech acquisition will create sports betting giant, says Contagious
Toronto-based gaming and software company confirms talks and says combined business will create a global leader in pari-mutuel wagering
Contagious Gaming has confirmed it is in talks to acquire Sportech in a move it said would create one of the worldâs leading sports betting businesses. [private]
In a statement issued last night, Contagious said it was in discussions with Sportech over a possible business combination that would create a technology-focused sports betting company and global leader in pari-mutuel wagering.
Contagious said the combined business would create âthe largest pure play sports focused gaming company on the TSXâ and a âleader in sports bettingâ by offering live in-play wagering on a fixed odds and pari-mutuel basis to regulated markets.
âA proposal has been made to Sportech with respect to the business combination which the company expects to create significant shareholder value for existing and potential new shareholders of Sportech and Contagious Gaming,â the statement read.
âThe proposed business combination is subject to a number of conditions, including securing appropriate debt and equity financing,â the statement added.
Contagious has until 11 September 2015 to table a firm offer for Sportech or step away from the deal, and the supplier said there can be âno certaintyâ that the submission of its proposal will lead to it making a formal offer.
Last week Sportech said it had received an approach from Contagious Gaming and an offer, if made, would be above the London-based firmâs current share price of 62.63p as of 13 August and would comprise a majority in cash and the remaining balance in new Contagious Gaming shares.
Back in May Contagious Gaming announced it had acquired Germany and Isle of Man-based sportsbook software suppliers Digitote in a â¬5m 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.
Sportechâs share price was up 0.22% to 67.65pm at the time of writing.