The board has put an end to talks with Standard General and recommended the sports betting company’s sale to BetMakers.
Australia.- The board of the sports betting company Sportech has announced it has ended negotiations with Standard General and recommended continuing with the sale of company assets to another interested party, BetMakers.
Sportech received a rival offer from Standard General after BetMakers’ acquisition proposal was announced on December 1 but the companies have not been able to agree on a price for the purchase of Sportech’s shares.
Sportech said: “Having considered the full terms and conditions of Standard General’s proposal, and taking into account the views of the company’s major shareholders, the board has concluded that the proposal did not adequately value the businesses and prospects of Sportech, in the light of both the execution risk attached to Standard General’s proposal and the company’s other options to create shareholder value, including the proposed disposal of its Global Tote business to BetMakers Technology Group.”
The decision means the path is now clear for shareholders to vote on the sale to the Australian sports betting firm to Betmakers at the annual meeting scheduled for December 24.
BetMakers has its sights on Sportech’s tote and digital business in order to boost its US expansion.
The operation includes Sportech’s racing and digital assets in the United States, the United Kingdom and Europe.
The transaction is valued at AU$56.2m (US$41.34m), according to the December 1 announcement. The board at BetMakers Technology Group has already recommended the acquisition.
The tote Business in the US comprises betting solutions, hardware and operational services for over 200 racetracks, casinos and betting venues and customers across the United States, Canada and Latin America.
The digital business provides white-label betting solutions to more than 25 customers in North America, while the UK and European unit offers betting technology, parimutuel and comingling services to more than 35 customers across the UK, Ireland, Europe and Asia.
The deal also covers QuantumTM Tote Technology, a tote betting engine used at events such as the Breeders Cup and Royal Ascot race meetings.