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Sportech, an international betting technology business, is pleased to announce that it has entered into a conditional agreement to sell its Bump Worldwide Inc. business to Canadian Bank Note Company, Limited (‘Canadian Banknote’ or ‘CBN’) of Ontario, Canada for gross consideration of CN$10 million (c.£5.7 million), which includes a CN$2 million (c.£1.1 million) earn out related to performance in 2022.
The sale is anticipated to complete during Q2-2021 and net proceeds will create potential further investment capital for the Group’s Connecticut sports betting ambitions and retail gaming business.
Bump Worldwide, Inc., marketed as Bump 50:50, provides technologies and services enabling clients to offer digital raffle fundraising programmes in stadiums and online. Most Bump clients are foundations affiliated with professional and collegiate sports teams, including some of the most successful sports franchises in North America.
CBN operates across four key market areas including Lottery and Charitable Gaming, where its clients include the Ottawa Senators, Toronto Maple Leafs, Toronto Raptors and Toronto Blue Jays. As such, they are ideally positioned to continue delivery of a superior client service and innovative product suite.
Richard McGuire, Chief Executive of Sportech, said: “We are immensely proud of the progress the Bump management team have achieved in recent years and believe the acquisition by CBN will provide additional opportunities and a broader product suite ultimately leading to further innovation, benefitting all clients, within the charitable gaming space.”
Craig Bascombe, President of Lottery Systems and CFO of Canadian Banknote said: “The acquisition of Bump 50:50 is very strategic for CBN. The organisational cultures are remarkably similar so we are confident it will be seamless for customers of both organisations. We are anxious to complete this transaction as soon as possible.”
In the year ended 31 December 2019, Bump generated a loss before tax of £0.15 million. As at 30 June 2020, Bump had gross assets of £0.85 million.
The disposal constitutes a Class 2 transaction under the Financial Conduct Authority’s Listing Rules.