Sportech, an international betting technology business, announced that it has entered into a conditional agreement to sell its Bump Worldwide Inc. business to Canadian Bank Note Company Ltd. (CBN) of Ontario for a gross consideration of CN$10 million, which includes a CN$2 million earn-out related to performance in 2022.
The sale is anticipated to complete during Q2-2021, and net proceeds will create potential further investment capital for the group’s Connecticut sports betting ambitions and retail gaming business.
Bump Worldwide, Inc., marketed as Bump 50:50, provides technologies and services enabling clients to offer digital raffle fundraising programs in stadiums and online. Most Bump clients are foundations affiliated with professional and collegiate sports teams, including some of the most successful sports franchises in North America.
CBN operates across four key market areas including lottery and charitable gaming, where its clients include the Ottawa Senators, Toronto Maple Leafs, Toronto Raptors and Toronto Blue Jays.
“We are immensely proud of the progress the Bump management team have achieved in recent years,” said Richard McGuire, chief executive of Sportech, “and believe the acquisition by CBN will provide additional opportunities and a broader product suite ultimately leading to further innovation, benefitting all clients within the charitable gaming space.”
Craig Bascombe, president of lottery systems and CFO of Canadian Banknote, said, “The acquisition of Bump 50:50 is very strategic for CBN. The organizational cultures are remarkably similar, so we are confident it will be seamless for customers of both organizations. We are anxious to complete this transaction as soon as possible.”
