Sportech PLC (LSE:SPO) said it struck a deal to sell its Latin American lottery software business to Inspired Entertainment Inc for up to US$14.5mln.
The lottery unit, Leidsa, is licensed by the government of the Dominican Republic to operate lotteries for sale both domestically and online, operating in over 2,000 outlets.
Inspired Entertainment, a US-based business-to-business provider of gaming content, systems and solutions, will pay the consideration in two parts, Sportech said.
An initial US$12.5mln is to be paid in cash upon completion by the Nasdaq-listed company, and up to a further US$2mln will be payable in royalty-based cash revenues from the licensing of digital assets to Inspired that will support Leidsa's online retail platform.
Andrew Lindley, the chief executive officer of Sportech, said: "This deal represents Sportech's exit from the supply of lottery products managed on the Quantum system.”
Inspired boss Lorne Weil said Leidsa is one of the largest and most successful lotteries in Latin America and the new owner plans to expand the lottery systems platform around the world.