Betting technology supplier Sportech has agreed to sell its Bump Worldwide business, which includes the Bump 50:50 brand, to currency printing business Canadian Banknote for CN$10m ($7.8m/€6.5m/£5.7m).
The deal consists of $8m up front, plus a $2m performance-based earn-out payment, which would be paid in 2022. The deal is set to close in the second quarter of the year.
Banknote – which prints lottery tickets as well as Canada’s currency, with clients including the Ottawa Senators, Toronto Maple Leafs, Toronto Raptors and Toronto Blue Jays – would then acquire Bump 50:50, which powers in-stadium raffles for professional sports teams.
Sportech said it hoped to use the funds from the deal to invest in its plans to launch sports betting in Connecticut if the vertical is permitted there. It already powers betting on racing and jai alai in the state.
“We are immensely proud of the progress the Bump management team have achieved in recent years and believe the acquisition by CBN will provide additional opportunities and a broader product suite ultimately leading to further innovation, benefitting all clients, within the charitable gaming space,” Richard McGuire, chief executive of Sportech, said.
Craig Bascombe, president of Lottery Systems and CFO of Canadian Banknote, said the integration of Bump 50:50 should be quick and seamless.
“The acquisition of Bump 50:50 is very strategic for CBN,” Bascombe said. “The organisational cultures are remarkably similar so we are confident it will be seamless for customers of both organisations.
“We are anxious to complete this transaction as soon as possible.”
In the 2019 calendar year, the most recent year for which data is available, Bump made a pre-tax loss of £150,000.
Late last year, New York-based investment fund Standard General made multiple bids to acquire all of Sportech, but both a 28.5 pence per share offer in November and December’s 32.5 pence per share bid were rejected. After a “significant shareholder” of Sportech informed Standard General that they would only be willing to support a “substantially higher offer”, Standard General withdrew from talks.
In December 2020, Australia’s BetMakers Technology Group agreed to acquire Sportech’s Global Tote business for a total cash consideration of £30.9m. This business includes the Americas Tote business, which provides betting solutions, hardware and operational services to more than 200 racetracks, casinos and betting venues to more than 50 customers in the US, Canada and Latin America.