27 Sep 2013 07:00
27 September 2013
Sportech PLC
Sportech PLC ("Sportech" or the "Company") acquires Data Tote Limited, a Leading Provider of On-Track and Online Greyhound and Horse Race Betting Services in Europe
Sportech now provides tote services to the majority of the UK & Ireland's greyhound tracks
Sportech is pleased to announce the acquisition of Data Tote Limited ("Data Tote"), a leading UK betting operator and technology and services provider focused on the European greyhound and horseracing betting market, for an initial consideration of £3.1m. Upon completion of the acquisition, Sportech will exclusively provide betting services to 41 of the 43 greyhound tracks in the UK and Ireland.
The acquisition is expected to be earnings enhancing in its first full year of ownership.
Rationale for the acquisition
The acquisition of Data Tote further reinforces Sportech's position as one of the largest operators and providers of betting technologies and services in the world. Data Tote brings an incremental customer base with strong year-on-year revenue growth that will broaden Sportech's share of the European betting market.
Data Tote, which is headquartered in Bristol, UK, brings a complementary product suite supplying its tote systems and services to 23 of the UK's 25 greyhound tracks and all 18 tracks in Ireland. Beyond its main market in the UK and Ireland, Data Tote's tote betting systems operate in greyhound, trotting and horse racing tracks in Sweden, Germany and Malta.
Data Tote also provides the betting systems and technology at the racecourse for the unique ChesterBet, BangorBet and RiponBet betting services and has recently entered a relationship with Coral, supplying a range of sports pools software and services.
Under the terms of the acquisition, the current management team of Data Tote will continue to build on its core business and the growing business opportunities while further developing Sportech's European tote racing business. Edwin Osborne, CEO and owner of Data Tote, will continue in his role and assume additional responsibility within Sportech's European tote racing business. Edwin will report to Andrew Gaughan, Managing Director of Sportech Racing.
Key financial information
The consideration, to be funded from Sportech's existing banking facilities, comprises of an initial cash consideration of £3.1m, which includes the acquisition of £0.7m in cash at bank at date of completion. A further deferred payment of up to £1.0m in cash will be payable in the event that Data Tote meets certain cumulative growth performance targets for the period from the date of completion to 30 June 2016.
For the year ended 30 June 2013, Data Tote reported turnover of £2.2m producing an EBITDA of £0.4m and a profit before tax and exceptional items, of £0.2m. Net assets as of 30 June 2013 were £1.2m. Data Tote's revenues and EBITDA are forecast to grow as a result of a number of significant contracts entered into in 2013.
Commenting on the acquisition, Ian Penrose, Chief Executive of Sportech, said:
"I am delighted that Sportech has acquired a highly innovative organisation with a talented management team and a wide European customer base. This complementary business will strengthen and augment our global operations and widen our distribution in Europe."
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For further information, please contact:
Sportech PLC 020 7268 2400
Ian Penrose, Chief Executive
Brunswick Group LLP 020 7404 5959
Mike Smith, Tom Williams sportech@brunswickgroup.com