Sportech sells Vernons.com for £3m
LISTED gaming group Sportech is selling its Liverpool-based Vernons.com business to NetPlayTV for £3m.
The division, which offers online games such as bingo and poker, made a first half loss of £700,000, a trend which has continued.
The company wants to use the cash to invest in opportunities in the US.
It said: “Following a detailed strategic review of the e-Gaming business in the last six months, Sportech’s management has concluded that the operation is not of sufficient scale and that Sportech would need to invest further or acquire additional e-Gaming assets to derive an acceptable financial return.”
The deal includes the Vernons branded online casino, poker, bingo and sportsbook websites, the rights to the customer database and the transfer of an undisclosed number of employees. In the year to December the business reported a profits, before tax and exceptionals, of £1.1m on revenue of £4.8m. At June 30 its gross assets were £500,000.
Sportech chief executive Ian Penrose said: “Our loss making Vernons casino, poker and bingo business has had a difficult year, and the impending introduction of Point of Consumption tax next year increases the challenges ahead for a sub scale operation in an increasingly competitive marketplace.
“We are delighted to have realised £3m in cash for the sale to NetPlay, who will be able to combine increased scale and market leading interactive gaming television skills to take the business forward. This is another positive step in increasing the focus of Sportech on operations where we hold competitive advantage, particularly those in the US.”
Netplay, which was established in Lancaster but is now based in London, said: “This represents the acceleration of our strategy to grow through both organic growth and strategic acquisitions. We look forward to investing further in our proven marketing strategy for Vernons.com alongside our existing brands and continuing to drive value for shareholders.”
