Sportech sheds Bump weight to Canadian Banknote
Sportech Plc has entered a ‘conditional agreement’ with Canadian Banknote Company (CBN) to sell its Bump Worldwide Inc subsidiary for a ‘gross consideration’ of CAD $10 million (circa £5.7m).
Bump is the digital and in-stadia draw-based raffles solutions subsidiary of Sportech Plc which primarily services North American pro-sports franchises and collegiate sports organisations.
Updating investors, Sportech confirmed that it had conditionally approved CBN’s approach for Bump, with the Canadian lottery and printing firm offering a further CAD $2 million earnout incentive related to the asset’s 2022 performance.
Sportech has predicted that the sale will be completed by Q2 2021, with all proceeds carried to the firm’s US wagering units.
Richard McGuire, Chief Executive of Sportech, commented on the transaction: “We are immensely proud of the progress the Bump management team have achieved in recent years and believe the acquisition by CBN will provide additional opportunities and a broader product suite ultimately leading to further innovation, benefitting all clients, within the charitable gaming space.”
The deal will see Sportech continue to offload its non-core assets, as the LSE firm prepares to merge its business with new owner BetMakers – thereby completing its $50 million deal which was accepted by shareholders at the start of 2021.
Meanwhile, CBN, the licensed lottery and charitable gaming services provider for Canadian markets, stated that it would utilise Bump to optimise and personalise its services for the key pro-sports franchise contracts of the Ottawa Senators, Toronto Maple Leafs, Toronto Raptors and Toronto Blue Jays.
“The acquisition of Bump 50:50 is very strategic for CBN,” added Craig Bascombe, President of Lottery Systems and CFO of Canadian Banknote. “The organisational cultures are remarkably similar so we are confident it will be seamless for customers of both organisations. We are anxious to complete this transaction as soon as possible.”
Source: SBC News