Australian digital lottery company, Jumbo Interactive, has announced it has signed an agreement that will see them acquire the Canadian lottery management provider, Stride Management.
The deal, which is subject to Alberta and Saskatchewan’s Gaming Regulators approval, is worth up to A$11.7m.
Jumbo says the acquisition is a ‘key strategic step’ in its ‘international expansion strategy’ after securing the acquisition of the UK-based company Gatherwell in 2019.
Jumbo Interactive CEO and Founder, Mike Veverka, said: “Since 1997 Stride has grown to service over 750,000 active lottery players generating around A$122m in annual ticket sales.
“The acquisition will significantly add scale to our Managed Services business and gives us a strategic foothold to grow in the Canadian charity lotteries market.
“Stride has a proven track record working with charitable organisations for over 20 years and we look forward to supporting the not-for-profit sector in Canada in meeting the challenges from COVID-19 and digitising their fundraising programs utilising Jumbo’s world leading software and services.”
Stride is forecasting to generate A$122m in total transaction value with estimated service revenue of A$6.5m and a net profit before tax of A$2.5m.
The lottery management provider’s current management team, consisting of its President, Dean Faithfull, and three key senior managers, will remain with the firm post completion.