UK-based online gambling and entertainment company Sportech has finalized the sale of its interest in the Dominican Republic lottery (Loteria Electronica Internacional Dominicana) to Inspired Entertainment.
Sportech Sells Leidsa Interest for $14.5M
The deal was valued at $14.5 million and immediately boosted the share price of Sportech by more than five percent. Out of this total sum, $12.5 million will be paid in cash and $2 million will be paid in royalties and digital asset licensing to Inspired.
The Dominican Republic lottery yielded Sportech around $1.9 million in 2020. By June this year, the group assets associated with the contracts were estimated at $2.17 million. Because of the lottery’s lucrative nature, the deal between Sportech and Inspired is one that is important for the future of the industry.
For Andrew Lindley, the chief executive officer of Sportech, “the 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.”
In Lindley’s words, this will allow Sportech’s lottery division to concentrate exclusively on supplies managed on its wholly-owned, cloud-based platform. According to the CEO, the agreement is fully in-line with Sportech’s future focus.
Lindley concluded that he is pleased to hand Sportech’s valued customer over to “the safe pair of hands” that is Inspired Entertainment.
Inspired is Excited by the Transaction
Inspired Entertainment, on the other hand, is glad to receive the interest in the Dominican Republic lottery and to be able to once again negotiate with Sportech.
The executive chairman of Inspired, Lorne Weil, reminded that the management of Inspired “has a lengthy history” with both the lottery and Sportech. He added that he is pleased that all parties worked in synchrony to complete the transaction.
Since the Dominican Republic Lottery, the Leidsa, is one of the biggest and most prosperous lotteries in the LATAM region, Weil is thrilled by the prospects of expanding into the region. He explained that Inspired Entertainment will seek to further enhance the lottery system platforms and work to expand on the worldwide online and retail lottery market.
Sportech has had an eventful year. In summer 2021, the company moved from the London Stock Exchange to the London AIM as it believed the smaller market is better-suited for the firm’s business. In August, Sportech underwent a downsizing that saw some changes being made to its leadership. The company welcomed Lindley as a chief executive and Nicola Rowlands as a CFO and parted ways with the former CEO, Richard McGuire, and the former CFO, Tom Hearne.