Updating the market, Sportech Plc has confirmed that it has entered a ‘conditional agreement’ to sell its Football Pools division for £83 million to ‘FP Acquisitions Limited’ a newly created company controlled by the funds of London private equity firm OpCapita.
Seeking deal clearance, Sportech governance will now present the cash offer to its investors for approval.
The Sportech board details that the funds generated from the sale will be used to invest in long-term product and technology development. Furthermore, any net proceeds from the disposal will be returned to Sportech shareholders.
Governance further points that the cash £83 million deal is an attractive proposition since the company is now primarily focused on expanding its US Racing & Digital services.
Focusing on its US divisions, Sportech details that its Football Pools product may not have the ‘material synergies’ for the firm’s future growth strategy.
Updating investors on the proposed disposal Ian Penrose, Chief Executive of Sportech, said:
“The sale of The Football Pools Business represents an important strategic development for Sportech, having established a strong platform for growth, following completion of an extensive and successful modernisation programme. We have delivered our objective of stabilising earnings, and are delighted to have concluded this deal for Sportech’s shareholders, The Football Pools Business and its employees.”
Potential new owner OpCapita stated that it had been reviewing the UK betting and gaming sector for a period of time, seeking for viable investment opportunities.
The private equity firm detailed that it was drawn to the Football Pools by ‘its loyal customer base, providing a solid foundation on which to build, through new distribution channels, additional new games and fresh marketing’.
John Von Spreckelsen, Chairman of OpCapita, said: “We are delighted to be acquiring The Football Pools, which occupies a unique place in British culture. Sportech has successfully modernised the business and we look forward to realising its significant growth potential. As part of that growth strategy, we plan to ensure existing loyal customers continue to enjoy the game and bring The Football Pools, already loved by so many, to an even wider audience”.
“We look forward to partnering with Conleth Byrne and his team to help develop the company further and supporting the community with its commitment to charitable causes.”