AGTech Holdings Limited , a service provider in China's sports lottery market announced the acquisition of the entire issued share capital of Shenzhen Silvercreek Digital Technology Co., Ltd . ( Silvercreek ), a phone and lottery service provider in China for a consideration of RMB73,000,000 (approximately $ 11,240,000), this week.
The deal will play-out in two phases with 50% payable on completion of the acquisition including a lock-up period of six months, and the remaining 50% payable after three years of completion provided that the three current key management executives of Silvercreek remain over the period.
Silvercreek provides lottery organisations with comprehensive phone and mobile betting solutions and reportedly has one of the best paperless lottery sales platforms in China. It has already developed phone and mobile betting business in six provinces in the Peoples Republic of China, namely Hunan, Fujian, Jiangxi, Zhejiang, Ningxia and Yunnan.
John Sun , Chairman & CEO of AGTech, said, "We are optimistic about the prospects of the phone and mobile lottery market in China as with the launch of phone betting in 2011, the number of non-cash betting accounts is expected to reach 5 million in 2013 and 10 million in 2015. As Silvercreek has established presence, expertise and experience in the field, this acquisition could bring us immediate access to the lucrative phone and mobile lottery market. Moreover, there is huge potential for Silvercreek to create synergies with our existing businesses. This transaction will significantly strengthen our leading position in China's lottery market."
The acquisition can only be good news for AGTech Holdings' subsidiary Asia Gaming Technologies (Beijing) Co., Ltd ., a 51% owned joint venture with UK land and online gambling group Ladbrokes .
Source: InfoPowa News