A final agreement to acquire 100 percent of the equity of Next Generation Lotteries AS (NGL), a supplier of lottery management and ilottery technology, was signed by Pollard Banknote Limited.
The purchase price
The purchase price for the transaction shall be EUR 36 million, prior to normal working capital changes and certain deferred cash requirements, of which EUR 32 million shall be payable at the time of closing. The remaining EUR 4 million of which will be compensated until such gross margin goals are reached in 2021.
The purchase price will be financed from the existing cash resources of Pollard Banknote and the availability of Pollard Banknote under its existing senior credit facilities for approximately EUR 27.6 million and the issuance of Pollard Banknote for approximately EUR 4.6 million of treasury shares, subject to Toronto Stock Exchange approval.
The transaction is subject to certain customary regulatory and third-party approvals and is scheduled to close early in the first quarter of 2021.
A retail lotto system and ilottery platform is offered by NGL, a complete solution supplier to the lottery industry, as well as providing an omnichannel offering that raises lottery sales and returns to good causes.
NGL represents the likes of Loteries de Catalunya in Spain, with a focus on Europe and Asia, and is a lottery service provider in many other foreign jurisdictions, including Tunisia and Norway.
Doug Pollard, Pollard Banknote Co-CEO, said: “We are thrilled with the NGL team joining Pollard Banknote. NGL will significantly expand our product offering for both retail and ilottery gaming and will be a strong complement to our North American leading joint venture, NeoPollard Interactive LLC.
“The recent worldwide growth seen in 2020 in omnichannel lottery sales, and particularly ilottery, highlights an important opportunity for lotteries around the world. With NGL’s expertise, we look forward to helping our lottery customers in Europe and around the world to increase revenues for the good causes they support.”
When it purchased Novomatic Lottery Solutions (formerly Betware) from Novomatic AG on October 31, 2019, NGL acquired its lottery operations and has since concentrated on expanding its presence in the international lottery industry.
The firm has production workers in Iceland and Serbia, with a company-wide team of 130 committed professionals, in addition to its lottery operations staff in Spain and Tunisia.
NGL’s CEO, Hans Vigmostad, commented: “We are excited about the cultural fit between NGL and Pollard Banknote. Lotteries will not only appreciate the great technology we will offer, but also the commitment from our teams to offering the right solutions for our customers.”
— Pollard Banknote (@PollardBanknote) January 5, 2021