INTRALOT EXPANDS IN THE LARGE ARGENTINEAN LOTTERY MARKET THROUGH A SIGNIFICANT ACQUISITION
INTRALOT acquired a majority stake in the Argentinean technology company Techno Accion, a firm with a significant presence in the local market through 7,500 terminals in 10 states throughout Argentina. Through this acquisition, INTRALOT further strengthens its position in Latin America, where it already has a presence in Chile, Peru and Colombia.
Techno Accion offers integrated solutions for lottery organizations i.e. central systems and betting validation terminals.
Techno Accion is the 2nd largest company in the sector amongst 4 Argentinean companies that hold 100$% of the local market. INTRALOT acquired a 50,1% stake in the company whereas the remainder was acquired by the operator of the horse racing of Buenos Aires – HAPSA- and the Casino Club, the state’s casinos manager. Both partners are considered to be very important due to their in-depth knowledge of the local gaming market.
The acquisition cost reached 22 million USD for the whole company, while the company has a net cash position of 3.5 million USD, which shapes the 2006 EV/EBITDA ratio at 5.2x. This acquisition is in-line with INTRALOT’s strategy to acquire companies with a solid presence in their counties and with sound perspectives for further growth through new opportunities as well as by the synergies to be developed with INTRALOT.
INTRALOT’s CEO, Mr. Constantinos Antonopoulos stated: “INTRALOT, fully committed to its vision and planning, by the acquisition of Techno Accion strengthens its presence in the highly promising market of Latin America. Techno Accion’ s technological base as well as its market insight together with the cutting edge technology and services provided by INTRALOT – such as the design of new games, sports betting operation, etc. - will generate significant returns in the coming years, as new tenders are expected to be launched in the country. The gaming market of Argentina is very interesting as the projections for its growth are optimistic given the relative low penetration of gaming and the potential introduction of new games, such as numerical and sports betting games”.
Argentina has a population of 40 million people and a GDP per capita of 14,000 USD, which is expected to continue to grow at high rates in the next years, and specifically more than 8% in 2007. The country’s lottery market (including casinos) is estimated at 3.7 billion USD of which only 1.2 billion USD concerns sales of numeric games, or 30 USD per capita or just 0.2% of GDP percapita.
INTRALOT, a public company listed on the ASE, is a leading supplier of integrated gaming and transaction processing systems, innovative game content and value added services to state-licensed gaming organizations worldwide. Its broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations, its experience in sports games and its leading-edge technology give INTRALOT a competitive advantage which contributes directly to customers’ efficiency, profitability and growth. INTRALOT’s footprint straddles five continents with 37 subsidiaries, 8 business offices, over 3,600 people and revenues of € 523 million for 2005 and €700(e) for 2006.