Jumbo Interactive will “accelerate its expansion strategy” for the Canadian lottery management provider Stride Management in 2023, following a significant breakthrough in British Columbia.
The Australian digital lottery company acquired Stride in June as part of a ‘key strategic step’ in its ‘international expansion strategy’.
Canada was previously outlined as an area targeted for significant growth, with Jumbo setting its sights on becoming the leading specialists in the digital lottery sphere.
Stride has now been granted a Gaming Services Provider licence in the Canadian province of British Columbia, and the firm is hoping for similar success in Ontario after submitting an application to the Alcohol and Gaming Commission Of Ontario.
“With over three times the population of Alberta and Saskatchewan, Ontario and British Columbia represent a compelling growth opportunity for Stride to expand its client base,” said Mike Veverka, Jumbo CEO and Founder.
Under the updated acquisition arrangements, Stride’s President, Dean Faithfull, will retire from his roles as a Director, President and as an employee of Stride, effective December 31.
“I would like to thank Dean for his leadership and significant contribution to Stride over the last two decades,” added Veverka.
“I am also very pleased to announce the appointment of Shane Simmons to replace Dean. Shane has been with Stride for 11 years and has managed the day-to-day operations of the business as Stride’s Chief Business Officer.
“He brings a deep understanding of the Canadian charity lottery market and will facilitate a smooth transition which has already been in progress for some time.”
According to Jumbo, these amended acquisition arrangements will allow the company to accelerate its expansion strategy for Stride from January 1, 2023, six months earlier than the originally planned date of July 1, 2023.
In consideration for this early transition from Faithfull to Jumbo management, the total maximum consideration for the Stride acquisition has been varied, and the final earn-out payment has been restructured.
The closing payment of A$7.7m and first earn-out payment of A$1.65m remains the same, with both already paid.
However, the contingent second earn-out payment of A$1.65m has been revised to A$0.65m.
Additionally, a one-off payment, treated as part of the acquisition price, has now been set at A$1.13m. Of this amount, A$0.63m is to be paid within five business days of January 1, 2023, and the remaining A$0.5m is to be paid within five business days of April 1, 2023.
Overall, the total maximum consideration has been increased from A$11m to A$11.13m.