Sportech to sell The Football Pools for £83m
Liverpool-based betting company Sportech plans to sell The Football Pools for £83m, after an earlier deal to sell the business for £97m fell through in November.
This time the cash buyer is FP Acquisitions, a newly incorporated private limited company controlled by funds advised by OpCapita, a European private equity advisory firm specialising in the retail, consumer and leisure industries.
However, for the deal to go ahead FP Acquisitions would first need to obtain licences from the Gambling Commission.
The Football Pools is still planning to move into new premises in Liverpool city centre, a move that OpCapita has said it fully supports as part of its commitment to growing the business.
Sportech, which founded The Football Pools after acquiring the Littlewoods, Vernons and Zetters pool games and bringing them together under one brand in 2007, said the disposal would allow it to realise the value of the Football Pools business following its modernisation programme.
Net cash proceeds could be used to provide a further return of capital to shareholders, it added.
Ian Penrose, chief executive of Sportech, said: “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.
“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: “We are delighted to be acquiring The Football Pools, which occupies 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”.
“We look forward to partnering with Conleth Byrne and his team to help develop the company further and supporting the community with its commitment to charitable causes.”
In November, Sportech announced that negotiations with Liverpool-based Burlywood Capital to buy the Football Pools for £97m had terminated.
A deal looked imminent in September when Burlywood, which focuses on pay to play digital entertainment, said it would apply for a new company to be admitted to the AIM market, in order to acquire The Football Pools.
Burlywood had said it would finance the deal through a combination of equity from institutional investors and a new debt facility.
