Tipp24 SE: investment in geo-based online lottery GeoSweep
Dec 21, 2012 1:50 PM
Tipp24 SE / Key word(s): Miscellaneous
- Important strategic step for both parties as part of their international expansion
- GeoSweep range to be expanded in North America
(Hamburg, 21 December 2012) As part of its international expansion strategy, Tipp24 has acquired a stake in the UK company Roboreus Limited.
Roboreus operates the geo-based lottery game GeoSweep (www.geosweep.com) via its UK subsidiary GeoSweep Limited. In this online lottery game, players purchase squares ('Geos') on an online map that act as lottery tickets in daily location-based prize draws. The most popular Geos picked include players' own houses, well-known buildings and areas of particular interest such as sports stadiums and national monuments. Operating under a UK Gambling Commission licence, the product range of GeoSweep is currently available over the entire geographical area of Great Britain. The lottery is also offered in parts of Canada via a cooperation agreement. GeoSweep acts as the service provider for the Canadian provincial lottery organisation ALC. It is planned to expand the cooperation with state lottery companies in the near future - focusing on North America.
The investment implements Tipp24's strategy of acquiring its own licences and establishing a new international business division dedicated to providing Internet services to lottery companies.
Dr Hans Cornehl, CEO of Tipp24 SE, states: 'The investment is an important step in the internationalisation of Tipp24. GeoSweep is one of the few truly attractive product innovations in the entire online lottery business over the last ten years. The product can be easily and flexibly adapted to local market needs around the world. With our expertise in the end-user business, we can play an important role in helping GeoSweep achieve further international growth.' Dr Cornehl has been appointed as one of the four non-executive directors of Roboreus.
In the course of the transaction, Tipp24 will subscribe to new shares to be issued by Roboreus Limited for a cash contribution of GBP 10 million (approx. EUR 12.4 million). In addition, Tipp24 will acquire shares from current Roboreus shareholders, in a total shareholding in Roboreus of 25.7 percent. After a period of three years, an additional maximum earn out of GBP 1.9 million (approx. EUR 2.3 million) can be achieved, based on the financial performance of GeoSweep.
About Tipp24 SE: Tipp24 SE was founded in September 1999 and holds equity interests in a number of companies in Spain, Italy and the UK, which enable participation in lottery-based games via the Internet, especially via the websites www.ventura24.es, www.giochi24.it, www.mylotto24.co.uk and www.tipp24.com. From its foundation to the end of 2008, Tipp24 SE brokered tickets worth over 1.5 billion euros to the state lottery companies - in the latter years over 330 million euros annually. Following its successful IPO in 2005 (Prime Standard), the company was admitted to the SDAX index in June 2009. In July 2012, German online brokerage activities were successfully spun off from Tipp24 SE in the form of the company Lotto24 AG, which is listed separately on the stock exchange.
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