Sportech admits to Contagious takeover proposal

Sportech admits to Contagious takeover proposal

Friday, August 14, 2015 Totally Gaming
Contagious is already in the process of purchasing Digitote

The New Football Pools owner Sportech saw its shares rise by 12 per cent on Friday after it revealed it had received a takeover proposal from software developer Contagious Gaming.

The UK-based pools and pari-mutuel systems operator said it would only recommend an offer that was at a premium to its closing share price of 62.63 pence on Thursday and would comprise a majority in cash and the balance in new Contagious shares.

Canadian operator Contagious is currently in the process of purchasing B2B sports betting platform operator Digitote for €5m ($5.57m), and began trading on Toronto's TSX Venture Exchange in September 2014.

“A further announcement will be made when appropriate,” read a Sportech statement. “In the meantime, Sportech shareholders are advised by the board to take no action.

“There can be no certainty that any formal offer for the Company will be forthcoming, nor as to the terms of any such formal offer.”

Toronto-listed Contagious posted $1.16m of revenue for the year ended March 31, which was a 52 per cent rise on the previous year.

Sportech had total revenue of £104.1m (€146.08m/$162.7m) in 2014, down 5.6 per cent on the previous year, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) and operating profit were both slightly down at £24.0m and £17.2m. 

Sportech bought Littlewoods and Vernons Pools in the early 2000s and acquired Scientific Games Racing for £51.4m in 2010. Sportech has a presence in more than 30 countries and is licensed to operate in more than half of the US states.
 

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