MILAN, April 3 (Reuters) - Italy’s Lottomatica LTO.MI said its U.S. unit GTech is to acquire 90 percent of Gibraltar-based game services provider St Enodoc Holdings, which had revenues of 13.7 million euros ($21.41 million) last year.
Lottomatica, the world’s largest lottery operator, said on Thursday GTech would pay for the stake 28 million euros on a cash and debt-free basis, and up to an additional 13.6 million euros based on the performance of the business in 2008 and 2009.
Lottomatica, which expects the deal to be completed this quarter, said in a statement it would fund the purchase from existing cash balances.
St Enodoc subsidiaries include St Minver, which provides internet gaming services and operates one of the largest bingo networks in the world, Lottomatica said.
The regulated Internet-gaming market generates an estimated gross gaming yield of $15.1 billion annually, it said, adding it expects increasing demand for Internet gaming services in Europe, Asia and Latin America.
St Enodoc Founder and Chairman Gary Shaw will hold the remaining 10 percent of the company until at least 2012. Both Shaw and GTech have the right to cause GTech to acquire his shares in 2012, Lottomatica said.