Barcrest Group sold to Scientific Games

27/04/2011

Following months of speculation, Barcrest Group Limited has been sold to Scientific Games Corporation in a transaction valued at up to £35m.

Under the terms of the agreement, Scientific Games will pay approximately £33m in cash to IGT, plus a deferred consideration of approximately £2m which the company said is subject to the satisfaction of “certain conditions relating to a third-party contract”.

 IGT purchased Barcrest Group back in 1997 in a deal worth £42m.

The sale needs to be approved by UK competition authorities and is expected to be completed by the third quarter of 2011, at which time Barcrest will be integrated into Scientific Games’ gaming divisions, Global Draw and Games Media.

Barcrest generated revenues of approximately £45m in the fiscal year ended September 30th 2010 and the acquisition will extend Scientific Games’ presence in the UK server-based gaming market. 

It will also provide Scientific Games with access to new video lottery customers in Italy and the Czech Republic, as well as strengthening the company’s business in the interactive gaming segment where Barcrest game content is currently available through internet, mobile and other digital delivery channels.

“This transaction represents a major step forward in strengthening and expanding our server-based gaming content,” Ian Timmis, chief executive of Global Draw and Games Media told Gaming Intelligence.  “In addition, it will provide the opportunity for us to bring the advanced capabilities of our state-of-the-art gaming systems and operational expertise to new wide area gaming venues, such as UK-based gaming centers and bingo halls, along with venues in Italy and the Czech Republic.”

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