The board of Sportech Racing BV will be sold to RBP Luxembourg for a total cash consideration of up to €3.25 million on a debt free/cash free basis.
Sportech Racing BV is Sportech’s Netherlands business and obtained a five-year license in June 2017 for the exclusive rights to carry out tote betting on horseracing in the Netherlands. The company operates nine betting shops, 38 other outlets with point-of-sale terminals and online through the company’s website www.runnerz.nl.
The sale is subject to local regulatory consent and the transfer of various agreements and licenses (on market terms) from certain Sportech group entities to Sportech Racing BV. €2.8 million of the consideration will be payable at closing and up to a further €450,000 will be payable in January 2019, subject to certain agreed performance conditions being met. The transaction is expected to close in H2 2018, the company said in a press release.
“The proposed disposal represents an attractive opportunity to realize value following the successful license extension and restructuring of the business by management as we increase focus on US growth opportunities,” said Andrew Gaughan, CEO of Sportech in the release. “Sportech will continue to provide RBP, under a long-term contract, its ongoing tote services and also has a strong working relationship with them focused on developing and selling their French racing pools into our vast footprint of global customers.”
