Sportech Agrees to Sell Bump to Canadian Banking Note
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Sportech Agrees to Sell Bump to Canadian Banking Note

Sportech Agrees to Sell Bump to Canadian Banking Note

Betting technology business Sportech has agreed to sell its Bump Worldwide business to Canadian Bank Note for CN$10 million or approximately US$9.5 million. The agreement is conditional.

The deal includes a CN$2 million earn out related to performance in 2022. 

The deal is expected to sail through in the second quarter of 2021. Sportech said net proceeds will create potential further investment capital for its Connecticut sports betting ambitions and retail gaming business.


A strategic fit

Canadian Bank Note said the acquisition of Bump Worldwide -- which is marketed as Bump 50:50 -- was strategic.

Craig Bascombe, president of Lottery Systems and CFO of Canadian Banknote (CBN) said his organization and Bump 50:50’s “organizational cultures are remarkably similar so we are confident it will be seamless for customers of both organizations. We are anxious to complete this transaction as soon as possible.”

Kirk Arends, the head of business development for CBN’s lottery and gaming division, said acquiring Bump was a “natural fit for us to grow the business overnight.”

“We were looking for strategic ways to grow our raffle business. That’s what they do. They’ve got a good technology base, they’ve got great employees and their culture fits very nicely with the way we like to do business. It was an easy decision to make for us,” Arends said.

The Ottawa Business Journal said while this is not a massive transaction for a company of CBN’s size, it was nonetheless a significant move for the Ottawa-based firm.

Once the deal closes, the staff of the two organizations will work closely to help existing and prospective customers enhance the success of their charitable raffle programs.

Bump 50:50 provides technologies and services enabling clients to offer digital raffle fundraising programs in stadiums and online. Most Bump clients are foundations affiliated with professional and collegiate sports teams, including some of the most successful sports franchises in North America, a prepared statement said.

In 2019, Bump generated a loss before tax of US$210,000. As at 30 June 2020, Bump had gross assets of US$1.19 million.

“We are immensely proud of the progress the Bump management team have achieved in recent years and believe the acquisition by CBN will provide additional opportunities and a broader product suite ultimately leading to further innovation, benefitting all clients, within the charitable gaming space,” Richard McGuire, Chief Executive of Sportech, said.


Big things ahead

On the other hand, CBN operates across four key market areas including lottery and charitable gaming, where its clients include the Ottawa Senators, Toronto Maple Leafs, Toronto Raptors and Toronto Blue Jays. CBN said they are ideally positioned to continue delivering a superior client service and innovative product suite.

An earlier statement said in-venue and online raffles, such as the ones CBN provides, had become integral to the success of many charitable and not-for-profit fundraising efforts.  “Jurisdictions across the United States and Canada now realize the importance of expanding opportunities in this sector to help good cause organizations achieve their social goals. The shutdowns and distancing restrictions that have been the hallmark of the current pandemic make the growing migration to reliable and secure online raffle solutions for fundraising more urgent.”

CBN promised that there are big things ahead in charitable gaming.

Like everything else, charities have suffered from the effects of the COVID-19 pandemic. Online raffles present an opportunity for charities to raise money. 

Arends described the online space for raffles as a “greenfield in many jurisdictions. There’s a lot of room for growth here.”


More on CBN 

In 2014 CBN partnered with the Ottawa Senators Foundation and the Ontario Lottery and Gaming Corporation to develop and launch a more modern version of the 50/50 draw. The company said not only was this successfully launched without incident at the Ottawa Senators season opener, but it increased sales by 30 percent in the first year.

CBN said some of the results of the partnership included speed and convenience, which allowed fans to buy tickets from 32 mobile and eight fixed kiosk point-of-sale sellers and

greater excitement and increased sales, with real-time displays show the jackpot growing, which encourages more fans to take part. 

CBN, which was founded in 1897, has more than 1,700 employees worldwide. It is contracted to print money for more than 30 countries, including Canada and New Zealand, CBN also prints a variety of other secure documents such as passports and driver’s licences for governments around the world. The Ottawa Business Journal reported that three decades ago, CBN branched out into the gaming space when it began providing lottery terminals and related equipment for governments in Caribbean countries such as St. Lucia. Today, it oversees national lottery operations in nine jurisdictions in the Caribbean and Central America.

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