Sportech to sell off the Football Pools in £83m deal
By Josh White
Date: Thursday 02 Mar 2017
(ShareCast News) - Sports gambling operator Sportech, alongside OpCapita, announced on Thursday that a conditional agreement had been entered into under which FP Acquisitions - a newly incorporated private limited company controlled by funds advised by OpCapita - would acquire the Football Pools business for a total cash consideration of £83m on a debt free, cash free basis.
The London-listed company's board said it believed the disposal was in the best interests of Shareholders for a number of key reasons.
It claimed that it represented an "attractive opportunity" to realise the value of the Football Pools business following the successful implementation of its modernisation programme and as it continued to transition its business model in an increasingly competitive UK gaming market.
Sportech said it would also create a focussed gaming business primarily based in the US and comprising the racing, digital and venues divisions, operating in a market with attractive long-term growth prospects underpinned by potential future regulatory change in the gaming industry.
The board said it would also provide the retained group with additional resources to invest in product and technology developments, the potential rollout of US venues in Connecticut and California and pursue other potential growth opportunities where the board considered attractive returns on investment could be generated.
Sportech's board added that it considered both the Football Pools business and the retained group, whose constituent parts did not have material synergies, would each benefit from the increased management focus which would be achieved through a separation.
The net cash proceeds of the disposal could also enable the Sportech Group to provide a further return of capital to shareholders, with the quantum and timing of such return to be determined by the board following completion of the disposal.
Sportech confirmed the disposal remained conditional upon the purchaser having obtained the necessary licences from the Gambling Commission and the passing of the resolution by Sportech shareholders at a general meeting.
Purchaser OpCapita said it had "long studied" the gaming and leisure sectors for investment opportunities and in the Football Pools, formed through the combination of predecessor brands Littlewoods, Vernons and Zetters, believed it had found an "ideal" acquisition.
It said the business came with a loyal customer base, providing a solid foundation on which to build - through new distribution channels - additional new games and fresh marketing.
The Football Pools was still planning to move into new premises in Liverpool city centre, a move OpCapita said it fully supported as part of its commitment to growing the business.
"The sale of the Football Pools business represents an important strategic development for Sportech, having established a strong platform for growth, following completion of an extensive and successful modernisation programme," commented Sportech chief executive Ian Penrose.
"We have delivered our objective of stabilising earnings, and are delighted to have concluded this deal for Sportech's shareholders, the Football Pools business and its employees."
John Von Spreckelsen, chairman of OpCapita, said his company was "delighted" to be acquiring the Football Pools, which he said occupied a "unique place" in British culture.
"Sportech has successfully modernised the business and we look forward to realising its significant growth potential.
"As part of that growth strategy, we plan to ensure existing loyal customers continue to enjoy the game and bring the Football Pools, already loved by so many, to an even wider audience."
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