Scientific Games sells entire Sportech stake
Lottery and gaming supplier doubles investment in stock sale following acquisition of WMS Industries
Scientific Games has sold its stake in UK-based Sportech as part of its strategy of selling off non-core lottery assets following its $1.5bn acquisition of WMS Industries.
The US lottery giant purchased 39,743,179 shares at 42p each in 2010 and will double its money after offloading them for a total of £27.8m (USD$45.7m).
Scientific Games completed the acquisition of WMS Industries in October for $1.5bn in a pure debt transaction, bringing its total debt to almost $3bn.
eGaming Review understands Scientific Games is now looking to aid its debt reduction by selling off any non-core lottery assets, which included Sportech.
It brings to an end a relationship which started in October 2010 when Sportech purchased Scientific Games Racing for $83m in cash and shares.
Scientific Games, in partnership with 888 and WMS, secured an exclusive contract with the Delaware Lottery to supply the state’s three racinos with egaming platforms when internet gambling went live last November.
The news comes as Sportech continues to focus on expanding its US-facing business after announcing two major deals last month.
Sportech will supply New York’s Finger Lakes Racing Association with its online horseracing platform, as well as operating up to ten horserace betting venues in California.