UK gambling operator Sportech PLC is selling The Football Pools division to venture capital fund managing company Burlywood Capital LLP for the amount of £97.25 million, local media reported earlier today.
The deal is subject to Sportech shareholders’ approval and will also not be closed until a final sale agreement is reached. Under the terms of the proposed transaction, Burlywood Capital would pay the above-stated amount through a debt and equity combination.
In order to acquire The Football Pools brand, Burlywood Capital would establish a separate company, which would be trading on AIM. As mentioned above, institutional investors’ equity and a new debt facility would be used to finance the purchase. The deal would not be closed before the necessary equity is raised, it has also become clear.
The Football Pools is UK’s oldest and largest football pool betting company. Generally speaking, it provides gambling customers with the chance to win substantial monetary prizes by playing a variety of playing pool games that are based on betting on the outcome of football fixtures. Established more than 90 years ago, the gambling operator has paid out more than £3 billion to players and has donated over £1 billion to various good causes. Nowadays, more than 300,000 players from all over the UK are said to be playing The Football Pools games weekly.
Commenting on the acquisition deal, Sportech’s Board noted that it believes such a deal represents an excellent opportunity for the operator to realize The Football Pools’ value. Sportech has implemented a special program aimed at modernizing its brand and its offering. In addition, officials for the gambling operator noted that the transaction will act as additional driving force for the ongoing overhaul of its business model.
Burlywood Capital has revealed the proposed directors that would take the reins of the company which would buy The Football Pools from its current owner. Ian Hogg will take the Chairman role. Conleth Byrne will be appointed as Chief Executive officer. He is currently The Football Pools’ Managing Director. Carl Lynn, currently Finance Director of the gambling brand, will assume the Chief Financial Officer role. Last but not least, Liz Catchpole and Brian Mattingley will be appointed as Non-Executive Directors.
