Sportech diversifies with LOT.TO acquisition

Betting firm Sportech has completed the acquisition of a 100% share in UK-based digital gaming technology business, LOT.TO Systems Limited.

Under the terms of the acquisition, the consideration cost will be met by the issuance of two million ordinary shares in Sportech to the owners of LOT.TO Systems at a price of 20p per share.

The issued shares will be subject to a three-year lock-up agreement which prohibits any share sales by the acquired business owners during that time.

In addition, Richard McGuire, current executive chairman of Sportech, who currently holds a five percent stake in the LOT.TO business, will receive 100,000 consideration shares as part of the acquisition.

Addressing the acquisition, the company said it will help to “solidify” its gaming capabilities and services position, providing it with “growth opportunities through broadening the suite of gaming services offered by the group.”

“In addition, it will accelerate a strategy to further develop those growth opportunities, consolidate our sports betting capability, enhance our existing lottery product capabilities and support the digital development of our global pari-mutuel capabilities in an efficient and effective manner,” McGuire added.

In November 2018, the two businesses entered into a strategic alliance with the aim of proceeding with a 100% acquisition of the LOT.TO Systems business.

LOT.TO Systems currently provides turn-key solutions to B2B lottery operators including its Rapid Lotto and lottery betting products. Its iLottery platform can operate in any gambling vertical including self-service POS terminals plus online and mobile interfaces.