Sportech PLC announces Acquisition of eBet, a Leading Provider of Internet and Mobile Betting Services for Horse Racing in North America

Thu Dec 20, 2012 2:30am EST

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NEW HAVEN, Conn.,  Dec. 20, 2012  /PRNewswire/ -- Sportech PLC (LSE: SPO)
("Sportech") is pleased to announce the acquisition of eBet Online Inc ("eBet"),
a leading US business-to-business ("B2B") online betting operator and technology
and services provider focused on the North American horse racing betting market.
Total consideration, dependent upon future performance, is to be up to  $12.6
million.  

(Logo:  http://photos.prnewswire.com/prnh/20121106/NY06676LOGO  )

The acquisition is expected to be earnings enhancing in its first full year of
ownership.      

eBet is one of the largest online horse race wagering operators in the US,
processing  $106 million  in bets through its account wagering systems in the
year ended 30 June 2012.     

The acquisition of eBet reinforces Sportech's position as one of the largest
operators and providers of online and mobile betting technologies and services
across North America. The combination of eBet with Sportech's US interactive
business is expected to create significant strategic and operational synergies.
eBet brings an incremental customer base with strong year-on-year revenue growth
that will broaden Sportech's share of the account betting market in North
America.   

Following the acquisition, Sportech's enlarged US interactive operation will
provide customized websites, mobile applications, interactive voice response
(IVR) systems and telephone betting services to 29 licensed gaming and racing
customers across the US. 

In addition to its betting technologies, Sportech will continue to provide its
customers with a comprehensive package of services designed to maximize wagering
revenue, including full-service marketing, content management and end-user
customer service and technical support.  

Under the terms of the acquisition,  Mark Gregory, a principal and the current
CEO of eBet, will assume the role of Managing Director of Sportech's Interactive
Products & Services division.   Andrew Gaughan, the current Managing Director of
the division, will become Managing Director, Business Development - The
Americas. Both Mark and Andrew will report to  David Schreff.   

For the year ended  30 June 2012, eBet reported turnover of  $4.3 million 
producing an EBITDA before exceptional items of  $1.6 million  and a profit
before tax and exceptional items of  $1.4 million. Gross assets at  30 June 2012
 were  $2.3 million. Sportech has identified a total of  $250,000  of synergies
it would expect to achieve in 2013 increasing to annualized synergies of 
$500,000  from 2014 onwards.

Commenting on the acquisition,  Ian Penrose, Chief Executive of Sportech, said,
"The acquisition of eBet is an important further development in our North
American business, following approval last week to provide exclusive online
betting on horse racing in the  State of Connecticut  and the recent appointment
of  David Schreff  as Chief Operating Officer - The Americas. eBet brings
Sportech a significantly enlarged online customer base, a license in  Oregon 
and an experienced new Managing Director for our interactive division. The
addition of eBet significantly enhances our reach across horse racing in  the
United States."  

Contact:
Jennifer Conning
Jennifer.Conning@sportech.net
+1 (678) 427-3881

 

SOURCE  Sportech PLC
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