Jumbo Interactive to complete Stride acquisition after Alberta approval
Lottery retailer Jumbo Interactive has said it expects to complete its acquisition of lottery management provider Stride Management next week after securing approval from two provincial regulators in Canada.
Both the Alberta Gaming, Liquor and Cannabis (AGLC) and Saskatchewan Liquor and Gaming Authority (SLGA) approved the proposed acquisition, which was agreed in August last year.
Jumbo said that subject to the satisfaction of certain closing deliverables set out under the share purchase agreement, it is anticipated the deal will complete on 1 June.
The retailer added that Stride’s contribution to its earnings for the 2022 financial year is not expected to be material.
In August last year, Jumbo entered into an agreement to acquire 100% of Stride, in a deal it said would support its global expansion strategy.
Jumbo initially said the deal would go through before the end of 2021, but the retailer in December said this would not occur until the fourth quarter of its 2021-22 financial year, ended 30 June, when it expected to receive approval to proceed with the purchase.
This delay, Jumbo said, is due to the extensive application and review process of both the AGLC and SLGA.
Calgary-based Stride provides services to over 750,000 active lottery players in the Alberta and Saskatchewan provinces, with the deal to enable Jumbo to move into the Canadian charity lottery market for the first time.
At the time of the original accountments, Jumbo said the acquisition would mark another key strategic step in its international expansion strategy, following the purchase of UK lottery business Gatherwell in November 2019.
Terms of the deal stated 70% of the purchase price would be paid in cash on completion, while the remaining 30% would be payable in cash in two instalments in FY22 and FY23, subject to earnings hurdles being met.