Betting tech firm in running for £31m Global Tote sale

BRISTOL-BASED betting technology firm Sportech has entered into a conditional agreement to sell its Global Tote business to Betmakers Technology Group for £30.9million.

The Global Tote business provides tech and services to gaming businesses around the world, but mainly to the global horse racing betting industry.

Its systems processed around US$12.2billion in betting handle in the financial year ending December 31, 2019, for clients in 37 countries.

The deal is conditional on approval of the disposal by Sportech’s shareholders and BetMakers receiving relevant regulatory approvals prior to completion, Sportech said.

BetMakers said it would keep on all staff working in the Global Tote business and make “significant” investments.

Sportech’s board said it expected the disposal to complete in the first half of 2021, subject to conditions being satisfied.

The news comes just weeks after Sportech confirmed it had rejected multiple takeover offers from US hedge fund Standard General.

For the six months ending June 30, 2020, the Global Tote business generated revenue of £12.0million, according to Sportech, adjusted EBITDA of £1.6million and a loss before tax of £1.2million. It also had gross assets of £29.3million.

Sportech’s chief executive Richard McGuire said: “We previously set out that one of the group’s transformation objectives included evaluating and executing material corporate opportunities which deliver tangible investor returns. The board believe this transaction very much achieves that objective.”

BetMakers chief executive, Todd Buckingham, said: “The proposed acquisition of Global Tote is part of our international expansion plans to help power the excitement, growth and sustainability of horse racing.”