Contagious Gaming given more time to table Sportech offer

Canadian gaming firm now has until 9 October to make an official bid for Sportech or step away from the deal

Contagious Gaming has been give more time to table a formal offer to acquire Sportech after last week’s ‘put up or shut up’ (PUSU) deadline passed without an official bid being made. [private]

Sportech confirmed it was in talks with Contagious Gaming over a potential takeover last month, but under UK M&A regulations the Canadian firm had until 11 September to submit a firm offer or step away from the deal.

But when last week’s PUSU deadline passed without an offer being made, Sportech applied to The Panel on Takeovers and Mergers to extend the deadline to allow talks to continue and a new deadline has been set for 5pm on 9 October 2015.

Contagious previously said the combined business would create “the largest pure play sports-focused gaming company on the TSX” and a “leader in sports betting” by offering live in-play wagering on a fixed odds and pari-mutuel basis to regulated markets.

Sportech said an offer, if made, would be above the London-based firm’s share price of 62.63p as of 13 August and would be a majority cash bid with the remaining balance in new Contagious Gaming shares.

Contagious Gaming, which acquired Germany and Isle of Man-based sportsbook software suppliers Digitote in a €5m (£3.6m) deal back in May, is focused on deploying a lottery-style sports betting platform in the UK, as well as its digital instant lottery platform in the North America market.

Sportech’s share price was up 3.2% to 64.50p at the time of writing.