Sportech seals £3.1m deal for Data Tote
Sportech now providing tote services to majority of the UK and Ireland's greyhound tracks
Egaming operator Sportech has agreed to purchase on-track and online greyhound and horse race betting services provider Data Tote for an initial consideration of £3.1m.
Sportech will now provide tote services to the majority of the UK and Ireland’s greyhound racing tracks, strengthening its position within the market.
Bristol-headquartered Data Tote supplies its tote systems to 23 of the UK’s 25 greyhound tracks and all 18 tracks in Ireland, while also providing betting systems in Sweden, Germany and Malta.
The company recently entered into a relationship with Coral, supplying the UK bookmaker with sports pools software and services.
Data Tote reported turnover of £2.2m and an EBITDA of £0.4m for the year ended 30 June 2013, with revenues forecast to grow in the future owing to a number of significant contracts signed in 2013.
The current management team will remain in place tasked with growing Sportech’s European tote racing business, with Data Tote CEO Edwin Osborne assuming responsibility. Osborne will report to Sportech’s current managing director of racing Andrew Gaughan.
Sportech chief executive Ian Penrose said he was delighted to have acquired Data Tote and praised its management team and European customer base.
“This complementary business will strengthen and augment our global operations and widen our distribution in Europe,” he said.
A further deferred payment of up to £1.0m in cash will be payable in the event that Data Tote meets certain cumulative growth performance targets for the period from the date of completion to 30 June 2016.
The deal comes just two months after the operator boosted its presence in the US horseracing market, signing a six-year multi-state deal to provide Penn National Gaming with pari-mutuel wagering technology.