Jumbo Interactive has completed its £23m acquisition of external lottery manager StarVale.
The deal was announced to the Australian Securities Exchange (ASX) on January 27 but it was only completed this week following the satisfaction of all closing conditions under the terms of the Sale and Purchase Agreement, and the receipt of regulatory approval from the UK Gambling Commission (UKGC) on October 12.
The total consideration of £23m was settled comprising of 63% from Jumbo Interactive’s available cash reserves and 37% using existing debt facilities. This features a £12m upfront payment made on November 1, StarVale surplus cash funds of £6.5m acquired on completion, and deferred consideration of up to £4.5m to be held in escrow and payable in 1H24, subject to the achievement of the earnings target for the 12-month period ended June 30, 2023.
The Australian lottery retailer further noted in a statement that the group remains in a net cash position following completion of the acquisition.
It represents another landmark achievement for the company which, earlier this year, stated its ambition of becoming the “number one choice in digital lottery and services around the world”.
While Australia remains the group’s core focus, the UK was mentioned as a viable market for growth and, following the acquisition of UK-based StarVale, Jumbo Interactive appears to be laying down strong foundations across the globe.