Sportech sells stake in NYX joint venture for CA$23m
Operator confirms it has sold its 50% stake in SNG Interactive back to NYX Gaming less than 18 months after joining forces
Sportech has sold its 50% stake in its SNG Interactive joint-venture to partner NYX Gaming for a total consideration of CA$23m, the two firms have announced.
Sportech said the sale would generate an estimated pre-tax profit of $16.8m for the firm, and the funds would enable it to âaccelerate itâs near term development plansâ while it still maintained a material interested in US egaming.
âWe are pleased to have reached this agreement with NYX, generating a significant return for the Group in a short space of time,â Ian Penrose (pictured), Sportech CEO, said.
âThe structure of the deal enables us to reinvest in our US growth activities in the sports gaming market, whilst retaining a material stake in the future of online casino gaming in North America,â he added.
The US-facing JV, which was established less than 18 months ago, offered B2B services to licensed operators in regulated markets, and recently launched with Resorts Casino in New Jersey.
The deal will see Sportech receive a total consideration of up to $23m, comprising $10m in cash, 2.2m shares in NYX Gaming valued at $10m, and up to a maximum of $3m in differed consideration.
The cash sum will be paid in two $5m instalments completion of the deal and by no later than 19 August this year.
The deferred consideration will be paid to Sportech in instalments of $1m for each non-New Jersey customer acquired by SNG up to a total of three customers signed over the next five years.
Sportech said that its share of the losses associated with SNG to date to be around $0.38m and its share of net assets to be around $3.6m.
The news comes just weeks after Sportech rejected a £75m ($144m) offer to acquire its Football Pools business from an unknown bidder.