Scientific Games is selling its racing division to England’s Sportech for up to $83 million, putting the English firm in the thick of American pari-mutuel racing
.
In making the purchase, Sportech is reaching out to Playtech, a gaming software firm, which says it will buy 19.88 million shares in the new group, giving it a 9.99% stake, and will provide new products for the venture.
Scientific Games will retain a 19.99% stake in the enlarged group.
Sportech chairman Piers Pottinger told Reuters, “This is a transformational transaction for Sportech. It catapults the business onto the international stage.”
“This transaction will provide Sportech with a multi-sport, multi-channel gaming business," Sportech CEO Ian Penrose was quoted as saying. "The combined entity, which will have global reach and will be one of the leading pari-mutuel product and systems providers, will optimize its existing and new technologies to capitalize on worldwide growth opportunities.”
Scientific Games also will gain needed financing and executives Lorne Weil and Brooks Pierce will play a role in the new company.
Scientific Games will pick up some $33 million in cash, $10 million in deferred cash in 2013, and $32.1 million in stock shares.
(Harness Tracks of America)