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Tuesday, May 26, 2015 Totally Gaming
Contagious chief wants more acquisitions after Digitote deal

Peter Glancy, chief executive officer and director of Contagious Gaming, has told TotallyGaming.com that the software solutions developer intends to seek out further “accretive” acquisitions after it struck a deal to purchase Digitote. 

Under the agreement, Contagious will pay a total consideration of €5m ($5.6m) to acquire the sportsbook software company. The deal will be funded by a combination of common shares in Contagious, cash and a vendor take-back.

Digitote supplies commercial-grade sports betting and horse racing technology, hardware and support services to a number of major operators around Europe. The company’s Xturf business-to-business software platform is currently in use with brands such as Digibet and Betcenter.

Speaking to TotallyGaming.com about the deal, Glancy said that the agreement will provide Contagious with “incredibly robust” sportsbook technology that it will be able to offer to its own customers.

“The acquisition delivers an incredibly robust sportsbook technology with a 30-year track record, with an existing customer base, revenues and EBITDA,” Glancy said.

“The acquisition will enable us to provide our customers with a multi-channel live in-play and pre-match, fixed-odd sports betting platform alongside our proprietary in-play pari-mutuel Goal Time offering.”

As a result of the Digitote deal, Contagious will no longer go ahead with its planned acquisition of Chelbis Company. Contagious in January signed a definitive share purchase agreement to acquire all issued and outstanding securities of the UK online bingo provider.

However, the firm has now revealed that the pending acquisition was subject to a number of closing conditions in favour of Contagious. Chelbis did not satisfy these requirements and the deal will not go ahead. 

Despite the Chelbis deal falling short, Glancy did tell TotallyGaming.com that Contagious intends to follow up on the Digitote deal and pursue other acquisition opportunities as part of its wider organic growth strategy.

“We have a fully-funded organic growth plan and continue to seek out accretive acquisitions,” Glancy said.

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