Tabcorp acquires Intecq to expand its gaming services
The betting network is to acquire gaming technology group Intecq for €86 million to strengthen its gaming services division with the purpose to add €13 million to underlying earnings.
Australia.- The Melbourne-based company, which owns the TAB wagering networks in Victoria and New South Wales, will pay €6.39 a share for INTECQ. Formerly known as eBET, Intecq provides gaming technology services such as loyalty programs and gaming machine monitoring, to 1200 licensed venues, with a network of more than 70,000 gaming machines throughout Australia.
The deal has been approved by the target’s board, but remains subject to shareholder and regulatory approval. Tabcorp’s Managing Director David Attenborough said: “Intecq complements our Tabcorp Gaming Solutions business, providing increased scale and diversification of earnings.”
Attenborough said that Intecq’s operational and geographic footprint provides an exciting platform for accelerated growth by expanding their product and service offering to both the Intecq and Tabcorp customer base. INTECQ’s deputy executive chairman Tony Toohey and its acting chief executive Peter Walford will stay with the business after the deal is complete.
Tabcorp had 9550 machines under contract in February. They expect the acquisition of Intecq to generate earnings before interest, tax, depreciation and amortisation of about €13 million in the year after the integration of Intecq is completed. Tabcorp will pay for the acquisition, which is subject to approval from Intecq shareholders, the Australian Securities and Investments Commission, the court, gaming regulators and the Australian Competition and Consumer Commission, from existing cash and bank facilities.
