Commercial Finance Specialists

Sportech has secured asset financing to complete the purchase of racing and business venue management business SGR.

Sportech will use asset financing drawn from shares to help raise the potential $83 million (£51.4 million) to purchase the US racing and venue management business SGR.

An initial payment of $65 million (£40.3 million) will be completed, followed by commercial finance of up to $18 million (£11.2 million) if performance targets are met over the next three years.

Some $32 million (£19.8 million) in cash will be used to fund the deal, alongside the issue of new shares to Scientific Games, which currently owns SGR.

This shares distribution will give Scientific Games a percentage holding in Sportech of just under 20 per cent.

Speaking to the Daily Telegraph following the announcement of the deal, Sportech's chief executive Ian Penrose said: "It puts us in a leading position as both the technology supplier and operator of pool betting systems on the international stage.

"We have always been keen on the Tote."

Meanwhile, regulators in the US are mulling over the acquisition of online betting company Youbet.com by Churchill Downs and its compliance with antitrust laws.