Sportech has announced the sale of its contract for the supply of lottery systems to Loteria Electrónica Internacional Dominicana SA (Leidsa), to Inspired Entertainment in a deal worth up to $14.5m.
As per the terms of the sale agreement, Inspired will pay $12.5m in cash up-front, whilst the remaining $2m will be paid in royalty-based cash revenues from the licensing of digital assets.
Andrew Lindley, CEO of Sportech, said: “This deal represents Sportech’s exit from the supply of lottery products managed on the Quantum system, which was acquired by Betmakers from the Company as part of the disposal of the Company’s Tote business.
“This allows the Company’s lottery division to concentrate exclusively on supplies managed on its wholly-owned, cloud-based platform. The deal supports the future focus of the Company and we are also pleased to hand our valued customer over to the safe pair of hands that is Inspired Entertainment.”
The sale follows months of discussions between the two parties that began in August last year.
In August, Sportech announced it had chosen its preferred bidder and had entered a period of exclusivity with the bidders. Subsequent extensions to the period of exclusivity hinted that minor details of the deal were beginning to be ironed out.
In FY20, the Leidsa contract generated profits before taxation and extraordinary items of £1.36m. On 30 June 2021, the value of the gross assets associated with the Leidsa contract was £1.58m.
Lorne Weil, Executive Chair of Inspired, added: “The management of Inspired has a lengthy history with both Sportech and Leidsa and we are pleased that we were able to work together successfully to complete this transaction to the benefit of all parties.
“Leidsa is one of the largest and most successful lotteries in Latin America. Beyond the immediate potential in the Dominican Republic, we anticipate that the lottery systems platform can be further enhanced in order to accelerate the path of our strategic objectives in the worldwide online and retail lottery market.”