(Alliance News) - Sportech PLC on Tuesday said it sold its interest in its contract for the supply of lottery systems to Loteria Electronica Internacional Dominicana SA.
The sale went to Inspire Entertainment Inc, a US-based provider of virtual sports, mobile gaming and server-based gaming systems. The deal is worth up to USD14.5 million.
The deal will be paid in two parts, with USD12.5 million paid in cash on completion, and up to a further USD2.0 million in royalty based cash revenues from the licensing of digital assets to Inspired.
The Leidsa contract had generated profits of GBP1.4 million in financial 2020 for the Edinburgh-based gambling technology firm. In June 2021, the gross assets associated with the contracts was worth GBP1.6 million.
Sportech's chief executive officer, Andrew Lindley, said: "This 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. This allows the Company's lottery division to concentrate exclusively on supplies managed on its wholly owned, cloud-based platform."
Sportech's share price rose by 2.6% to 39.00 pence in London on Tuesday afternoon.
Sportech's board has said it will update on the use of the proceeds of the sale in due course, after assessing the capital requirements of the group.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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