Sportech Plc has entered into a ‘conditional agreement’ with the Canadian Banknote Company (CBN) for a ‘gross consideration’ of CAD $10 million (about £5.7 million) to sell its Bump Worldwide Inc subsidiary.
Bump is the Sportech Plc subsidiary of digital and in-stadium draw-based raffle solutions that primarily serves North American pro-sport franchises and collegiate sports organisations.
CBN’s Approach To Bump Conditionally Approved
Updating investors, Sportech confirmed that CBN’s approach to Bump had been conditionally approved, with the Canadian lottery and printing firm offering another CAD $2 million earnings incentive related to the 2022 performance of the asset.
Sportech has predicted that by Q2 2021 the sale will be completed, with all proceeds carried to the US wagering units of the company.
Richard McGuire, Sportech’s Chief Executive, commented on the transaction: “We are immensely proud of the progress the Bump management team have achieved in recent years and believe the acquisition by CBN will provide additional opportunities and a broader product suite ultimately leading to further innovation, benefitting all clients, within the charitable gaming space.”
As the LSE company plans to merge its business with new owner BetMakers, the deal will see Sportech continue to unload its non-core assets, thus completing its $50 million deal that was accepted by shareholders at the beginning of 2021.
Optimise key-pro-sports franchise contracts
Meanwhile, CBN, the licensed provider of lottery and charitable gaming services for Canadian markets, said it would use Bump to optimise and personalise its services for the Ottawa Senators, Toronto Maple Leafs, Toronto Raptors and Toronto Blue Jays’ key pro-sports franchise contracts.
“The acquisition of Bump 50:50 is very strategic for CBN,” added Craig Bascombe, President of Lottery Systems and CFO of Canadian Banknote. “The organisational cultures are remarkably similar so we are confident it will be seamless for customers of both organisations. We are anxious to complete this transaction as soon as possible.”