Sportech acquires US horse racing platform eBet
Acquisition sees Sportech strengthen its position as leading B2B supplier in horse racing market.
Sportech has acquired horseracing betting company eBet Online for up to £7.8m in a move which CEO Ian Penrose says “significantly enlarges” the operator’s North American customer base.
eBet is one of the largest online B2B horserace wagering operators in the US, processing more than $100m of bets on behalf of racetrack operators each year.
For the year ended 30 June 2012, eBet reported turnover of US$4.3m producing an EBITDA of $1.6m and a profit before tax of $1.4m.
The acquisition will see Sportech integrate eBet’s account wagering technology into its own B2B offering, which it says will achieve around $250,000 in 2013 increasing to annualised synergies of $500,000 from 2014 onwards.
Current eBet CEO Mark Gregory will assume the role of managing director of Sportech’s Interactive Products & Services division, while Andrew Gaughan, the current MD of that department, will become MD of business development for the Americas. Both will report to David Schreff, the man appointed to run Sportech’s North American operations earlier this month.
It is the second transformative North American deal Sportech has announced in as many weeks, having announced it won permission to exclusively operate online wagering on all horseracing in Connecticut on 11 December.
Sportech already operates betting venues in the state and will launch its first B2C online platform by April 2013 following approval from the Connecticut Department of Consumer Protection.
Commenting on the eBet deal, Penrose said: “eBet brings Sportech a significantly enlarged online customer base, a licence in Oregon and an experienced new managing director for our interactive division. The addition of eBet significantly enhances our reach across horseracing in the United States.
“The acquisition is earnings enhancing in 2013, and we look forward to building upon this firm base.”