Pollard Banknote Announces Completion of the Previously Announced Acquisition of Next Generation Lotteries
WINNIPEG, MB, Jan. 14, 2021 /CNW/ - Pollard Banknote Limited (TSX: PBL) ("Pollard Banknote", "Pollard" or the "Company") announced today that it has completed the previously announced ("Acquisition") of Next Generation Lotteries AS ("NGL"). Pollard signed a definitive agreement to acquire 100% of the equity of NGL on December 30, 2020. The Acquisition was subject to certain standard regulatory and third-party consents, which have now all been obtained.
NGL is a full solution supplier to the lottery industry, including providing a state-of-the-art retail lotto system and iLottery platform, creating a truly omni-channel offering that increases lottery revenues and returns to good causes. With a focus on Europe and Asia, current customers include the operation of the Loteries de Catalunya in Spain and the provision of lottery services in a number of other international jurisdictions, including Tunisia and Norway.
The Acquisition purchase price of NGL totalled €36 million prior to standard working capital adjustments and certain deferred cash considerations, of which €32 million was paid at the time of closing (approximately $50 million CDN using an exchange rate of $1.57 CDN per EUR). The remaining €4 million will be paid upon the achievement of specific gross margin targets in 2021. Approximately €27.4 million of the purchase price was funded from the Company's existing cash resources and availability under its existing senior credit facilities, with an additional €4.6 million of the purchase price satisfied by the issuance of 233,211 treasury shares of Pollard Banknote to the vendors.
About Pollard Banknote
Pollard Banknote is a leading lottery partner to more than 60 lotteries worldwide, providing high quality instant ticket products, licensed games, Schafer Systems and Fastrak retail merchandising solutions, and a full suite of digital offerings, ranging from world-class mkodo game apps to comprehensive player engagement and iLottery solutions, including strategic marketing and management services. The company is a proven innovator and has decades of experience helping lotteries to maximize player engagement, sales, and proceeds for good causes. Pollard Banknote also provides pull-tab tickets, bingo paper, and its Diamond Game and Oasis-branded electronic ticket machines to charitable and other gaming markets in North America. Established in 1907, Pollard Banknote is owned approximately 66.7% by the Pollard family and 33.3% by public shareholders, and is publicly traded on the TSX (PBL). For more information, please visit our website at www.pollardbanknote.com.
Forward-looking Statements
Certain statements in this press release may constitute "forward-looking" statements and information, which involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. When used in this document, such statements include such words as "may," "will," "expect," "believe," "plan," and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this document. There should not be an expectation that such information will in all circumstances be updated, supplemented, or revised whether as a result of new information, changing circumstances, future events, or otherwise.
SOURCE Pollard Banknote Limited
Doug Pollard, Co-Chief Executive Officer, E-mail: [email protected]; John Pollard, Co-Chief Executive Officer, E-mail: [email protected]; Rob Rose, Chief Financial Officer, E-mail: [email protected]; Pollard Banknote Limited, Telephone: (204) 474-2323
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