January 23, 2006
Digital Media and Media
EssNet’s online lottery assets sold to Scientific Games
EssNet: lottery and gambling services provider based in Sweden
EssNet is based out of Sweden and specialises in online lottery systems and terminals to run numbers games, sports betting, instant tickets and mobile games on a national level.
Their lottery customers include seven states in Germany, the national lotteries of Hungary and Norway, Golden Casket and Tattersall’s Lottery in Australia, and other national lotteries. EssNet’s reported online lottery revenues for the first six months of 2005 were approximately SEK 130m (approximately $16m).
Scientific Games to acquire EssNet’s Online Lottery Assets for $60m
Scientific Games, the publicly listed US company, is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators.
Scientific Games has signed an agreement to acquire all of the online lottery assets of EssNet for SEK 460m (approximately $60m),and will finance the purchase under its existing USD 250m revolving credit facility.
The acquisition will include all of EssNet’s existing online lottery contracts, as well as all technology and intellectual property pertaining to its online lottery business. Scientific Games will also inherit EssNet’s staff of technical experts and game designers, which are key to its selection as “IT Challenger of the Year” by the Swedish business magazine Veckans Affarer.
“This acquisition will not only boost our international lottery revenues and market share, it will give us fresh access to some key markets including Scandinavia, Australasia and Europe, particularly in Germany where it brings our online lottery customer list to 13 of the 16 states,” said Lorne Weil, Chairman and CEO of Scientific Games. “We are confident that this acquisition will integrate well with our existing operations, provide a platform for additional growth, and assist us in helping our instant ticket customers grow their business.”
GCA Altium acted as advisor to the sellers.