London-listed sports betting provider Sportech has entered into talks to acquire UK-licensed lottery solutions provider LOT.TO Systems.
Sportech has agreed a strategic alliance with LOT.TO and entered exclusive negotiations with a view to acquiring lottery provider on a share-for-share basis.
Sportech said that the alliance will provide mutual clients with a broader suite of gaming opportunities, with the acquisition further solidifying the company’s global gaming services position.
"The global gambling market is estimated to reach an annual turnover of $635bn by 2020, with the lottery sector accounting for about 30 per cent of that," said Sportech interim executive chairman Richard McGuire. "Our strategic alliance with Lot.to will enhance our existing successful core lottery product and will help us to capitalise on the worldwide growth of lottery and lottery-style games and reach an ever-expanding digital audience."
Headquartered in Birmingham, UK, LOT.TO’s recent launches include powering online and mobile offerings for Gambia’s biggest lottery operator Lotto-Bi and Nigeria’s Western Lotto.
"For worldwide appeal, no other gambling product comes close to lotteries," said LOT.TO co-founder Andrew Lindley. "Our future with Sportech is hugely exciting because our clients can benefit from the combination of Sportech's proven robust processing technology and hardware and our innovative iLottery platform in a single offering as well as the obvious synergies in sports betting platforms.
“Together, we can offer clients a truly world-class omni-channel solution that's incredibly powerful."
Shares in Sportech plc (LSE:SPO) were trading up marginally by 0.58 per cent to 39.98 pence per share in London Monday morning.