Jumbo Interactive has stated that an ‘extensive application and review process’ is behind the delay of its acquisition of the Canadian lottery management provider, Stride Management.
It was announced back in August that Jumbo had agreed on a deal worth A$11.7m to acquire the company and gain access to the Canadian market, subject to approval from Alberta and Saskatchewan Gaming Regulators.
Approval was expected by the end of the 2021 calendar year, however, following the extensive process, it is now expected to be delayed until Q4 of FY2022.
Jumbo stated that all relevant documentation has been submitted to Alberta Gaming, Liquor and Cannabis (AGLC) and Saskatchewan Liquor and Gaming Authority (SGLA) and still anticipates full approval from the two authorities.
The firm said that the acquisition is a ‘key strategic step’ in its ‘international expansion strategy’ after securing the acquisition of the UK-based company Gatherwell in 2019.
As of August 2021, Stride forecasted 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.
Updating stakeholders, Jumbo’s CEO and founder, Mike Veverka, said: “We are confident of obtaining the relevant regulatory approvals by the end of FY22 and remain supportive of the rigorous approval process and high-levels of scrutiny by the regulators, as this demonstrates the very high standards of integrity participants in the lottery industry need to adhere to.”