Sportech has acquired UK betting operator and technology and services provider Data Tote for an initial consideration of £3.1 million.
Under the deal, Sportech will exclusively provide betting services to 41 of the 43 greyhound tracks in the UK and Ireland. The acquisition is expected to be earnings enhancing in its first full year of ownership.
Data Tote’s current management team will continue to build on its core business and the growing business opportunities while further developing Sportech's European tote racing business. Owner and CEO of Data Tote, Edwin Osborne, will continue in his role and assume additional responsibility within Sportech's European tote racing business, reporting to Sportech Racing managing director Andrew Gaughan.
The £3.1 million consideration includes the acquisition of £0.7 million. A further deferred payment of up to £1 million in cash will be payable in the event that Data Tote meets certain cumulative growth performance targets for the period from the date of completion to June 30, 2016.