UK-listed gambling operator Sportech has concluded that its future lies with someone else taking the wheel, and therefore it’s inviting prospective buyers to come kick its tires.
In September, Sportech announced that it was launching a comprehensive review of its business and capital structure, with “all options to optimize value for the benefit of shareholders under consideration.”
The results of that review are now in, and the company announced Thursday that it had “decided to seek offers for the Company.” Sportech has appointed Canaccord Genuity Limited to serve as its financial adviser for this process.
Sportech claims to have already received queries from “several parties” following its September announcement, with four of these parties having made “preliminary approaches to acquire” Sportech’s operations, although the company says it has yet to engage in “detailed discussions” with any of these parties.
Sportech says it will continue to entertain suitors before providing the next update on its progress on November 9. Further announcements will be made as warranted.
As ever, Sportech cautioned that there was no guarantee it will receive an offer it finds acceptable, and non-executive chairman Richard McGuire said Sportech’s “confidence in our business, in our growth opportunities and in our dedicated professional colleagues means that a potential sale is only one of the strategic options open to the company.”
Sportech reported revenue of £36.4m (+5%) and earnings of £3.9m (-5%) in the six months ending June 30. Sportech’s operations include online and land-based pari-mutuel betting businesses in select US states, a relatively new in-stadia lottery division as well as several race betting technology deals in Europe. Sportech sold its UK-facing Football Pools division to European private equity firm OpCapita for £83m in March.
