Sportech to buy SGR for up to $83m

27th Jan 2010 08:31

Football pools company Sportech has agreed to buy SGR, a provider of pari-mutuel wagering services and systems, for up to $83m.The consideration will comprise an initial consideration of $65m payable at completion, deferred consideration of $10m payable on 30 September 2013 and further deferred consideration of up to $8m which will become payable in the event that SGR meets certain performance targets over the next three years. Sportech said the initial sum would comprise $32.9m in cash and 39.74 million Sportech shares issued at 50 pence each, giving Scientific Games a 19.99% stake in the enlarged group.Sportech also plans to raise £29.2m in a fully-underwritten placing and open offer of 58.4 million shares, also priced at 50 pence.Meanwhile, online gambling software firm Playtech has agreed to subscribe for 19,881,020 of the placed shares, representing 9.99% of the enlarged group, and will have the right to nominate one Non-Executive Director to the board of Sportech.