Leading sports betting company Sportech is pleased to announce that it has agreed terms for the sale of its Netherlands tote business, Sportech Racing BV, to RBP Luxembourg (RBP) for a consideration of €3.5 million ($3.97 million).
Sportech Racing BV currently enjoys a monopoly over tote betting and horseracing gambling markets in Holland after securing a five-year license in June of last year. Sportech operates 9 betting shops, 38 other outlets with point-of-sale terminals as well as online via the runnerz.nl domain.
According to a press statement, the sale is subject to local regulatory consent and the transfer of several agreements and licenses from unidentified Sportech group entities to Sportech Racing BV.
In terms of the sale, Sportech will receive an initial upfront fee of €2.8 million ($3.42 million) at the close of the deal and a further amount of €450,000 ($550,000) during January of next year which is subject to agreed performance conditions being met.
Andrew Gaughan, the Chief Executive Officer of Sportech, commented on the sale by saying that the Proposed Disposal represents an attractive opportunity to realize value following the successful license extension and restructuring of the business by management as they increase focus on US growth opportunities.
Gaughan went on to say that Sportech will continue to provide RBP, under a long term contract, its ongoing tote services and also has a strong working relationship with them focused on developing and selling their French racing pools into their vast foot-print of global customers.