INTRALOT: EXPANSION IN THE SLOVAKIAN MARKET THROUGH THE ACQUISITION OF SLOVENSKE LOTERIE
INTRALOT has signed an agreement to acquire a 51% stake in Slovenske Loterie, a company based in the Slovak Republic, holding licenses issued by the Slovak Ministry of Finance for the operation of Video Lottery Terminals (VLTs) and Automated Roulettes. INTRALOT will be able to increase its equity participation up to 81% through the exercise of call option rights in the next two years.
Moreover, through this transaction INTRALOT will acquire exclusive access to all proprietary rights of the technology assets of Tornado s.r.o., a company that develops software related to monitoring systems and games. Benefiting from INTRALOT’s cutting-edge technology and know-how Slovenske Loterie is expected to increase its market share and eventually lead the local market.
The overall transaction is expected to have a total value of €3.1 million, mainly through a capital increase in the company, which will dilute existing shareholders as they will waive their right to participate. The acquisition is subject to routine regulatory reviews and approvals prior to closing.
Slovenske Loterie was incorporated in March 1998, to develop and operate a nationwide video lottery network. It is a privately held company, operating video lottery terminals (VLT®) in over 300 locations across Slovakia, mainly focusing on pubs and specialized gaming arcades. Slovenske Loterie’s products include about 600 licensed and proprietary terminals with a portfolio of more than 30 games. The company is currently one of the largest operators of video lottery terminals in the country and the owner of the VLT® trademark in Slovakia.
INTRALOT S.A. CEO, Mr. Constantinos Antonopoulos, stated: “With this acquisition INTRALOT establishes its presence in the Slovak Republic, a country that is strategically located in central-east Europe. The company plans to expand the footprint of Slovenske Loterie, enrich its gaming portfolio and further develop its established network. INTRALOT’s presence in the promising Slovakian market is going to be beneficial for all the parties that are involved, in the most socially responsible way”.
Slovakia has a population of 5,5 Million, its GDP per capita reaches 17,500 US$, posting an increase of 8,7% in 2007, and according to estimations will continue to have a significant growth rate. The country enjoys a stable macro-economic environment, entered the European Union in 2004 and is expected to adopt Euro as its currency in 2009.
INTRALOT, a public listed company, is the leading supplier of integrated gaming and transaction processing systems, innovative game content and sports betting management, to state-licensed gaming organizations worldwide. It’s broad portfolio of products & services, its know-how of Lottery, Betting & Video Lottery operations and its leading-edge technology, give INTRALOT a competitive advantage which contributes directly to customers’ efficiency, profitability and growth. With presence in more than 40 countries, with approximately 4.200 people and revenues of €835,5 m. for 2007, INTRALOT has established its presence on all 5