Toronto-listed Contagious Gaming, developers of technology solutions for international regulated gaming and lottery markets, has entered into a definitive agreement to acquire all issued and outstanding common shares of Digitote Limited and Digitote Software GmbH Deutschland for .2 million. Berlin-based Digitote provides customized software solutions and product innovations for sports betting and horse and dog racing.
Contagious Gaming will issue 8,008,000 shares at $.50 per share or $4,004,000. Also, Contagious Gaming will offer earn-out consideration of 1x EBITDA, subject to certain adjustments, for each of the four years following the purchase closing for a total of up to $3,146,000. Digitote comes debt-free and with positive working capital.
Contagious Gaming Chief Executive Officer and Director Peter Glancy said, “We are delighted to announce that we have entered into a definitive agreement to acquire Digitote which expands and enhances our sports betting offering. The acquisition enables us to provide our existing and new customers with a fixed odd sports betting platform alongside Goal Time. Digitote’s software has a 30-year history as an extremely robust sports betting platform with a proven track record of handling over $10 billion of web, mobile and land-based wagers throughout Europe.”
Digitote Chief Executive Officer Guenter Boyks added, “We are excited to move forward in our growth plan with Contagious Gaming. The combined synergies offer huge potential with significant opportunities to expand into international markets and grow the combined entities revenues.”
