SBC News Pollard Banknote acquires Next Generation Lotteries for €36m

Pollard Banknote acquires Next Generation Lotteries for €36m

Pollard Banknote Limited has signed a definitive agreement to acquire 100% of the equity of Next Generation Lotteries AS (NGL), a provider of lottery management and ilottery technology.

The acquisition purchase price is €36m, prior to standard working capital adjustments and certain deferred cash considerations, of which €32m will be payable at the time of closing. The remaining €4m of which will be paid upon the achievement of certain gross margin targets in 2021.

The purchase price will be funded from existing Pollard Banknote cash resources and availability under its existing senior credit facilities for approximately €27.6m and the issuance of treasury shares, subject to Toronto Stock Exchange approval, of Pollard Banknote for approximately €4.6m.

The acquisition is subject to certain standard regulatory and third‐party consents and is expected to close early in the first quarter of 2021.

NGL, a full solution supplier to the lottery industry, provides a retail lotto system and ilottery platform, as well as creating an omnichannel offering that increases lottery revenues and returns to good causes.

With a focus on Europe and Asia, NGL serves the likes of Loteries de Catalunya in Spain and is a provider of lottery services in several other international jurisdictions including Tunisia and Norway.

Doug Pollard, Co‐CEO of Pollard Banknote, said: “We are thrilled with the NGL team joining Pollard Banknote. NGL will significantly expand our product offering for both retail and ilottery gaming and will be a strong complement to our North American leading joint venture, NeoPollard Interactive LLC.

“The recent worldwide growth seen in 2020 in omnichannel lottery sales, and particularly ilottery, highlights an important opportunity for lotteries around the world. With NGL’s expertise, we look forward to helping our lottery customers in Europe and around the world to increase revenues for the good causes they support.”

NGL acquired its lottery operations when it purchased Novomatic Lottery Solutions (formerly Betware) from Novomatic AG on 31 October, 2019, and it has been focused on expanding its presence in the international lottery market ever since.

In addition to its lottery operations staff in Spain and Tunisia, the firm has development staff in Iceland and Serbia, with a company‐wide team of 130 dedicated professionals.

Hans Vigmostad, CEO of NGL, commented: “We are excited about the cultural fit between NGL and Pollard Banknote. Lotteries will not only appreciate the great technology we will offer, but also the commitment from our teams to offering the right solutions for our customers.”

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