Jumbo Interactive, one of the biggest digital retailers of national jackpot lotteries and charity lotteries in Australia, has announced that it is ready to complete the acquisition of Stride Management after securing approval from two provincial regulators in Canada.
Stride Management is a lottery management provider based in Calgary, which provides services to over 750,000 active lottery players in the Alberta and Saskatchewan province. Jumbo Interactive was keen on acquiring this business in order to move into the Canadian charity lottery market for the first time.
The acquisition is worth 11.7 million dollars, and 70 percent of that amount will be paid in cash by Jumbo Interactive. The remaining 30 percent will also be paid in cash, but in two installments over the next two fiscal years. However, the payment of the two installments depend on earnings targets being met.
Dean Faithfull, the president of Stride Management, along with three key senior managers, will remain in charge after the completion of the deal, which was initially expected to take place before the end of 2021. The delay was caused by the extensive application and review process enforced by the provincial regulators.
Now the proposed acquisition has finally received the approval of the Alberta Gaming, Liquor and Cannabis (AGLC) and Saskatchewan Liquor and Gaming Authority (SLGA).