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Jumbo grabs a swag of gamblers in second UK lotteries deal

Business

Brisbane lotteries company Jumbo Interactive has scooped up another 850,000 potential gamblers in the UK through a deal to buy the StarVale Group for about $40 million.

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The cost of the deal includes $32.1 million plus up to $8.5 million in deferred payment if earnings hurdles were met.

Jumbo said the deal provided another established and reputable lottery manager in the UK and followed the buyout of Gatherwell in the UK in 2019.

The Lancaster-based StarVale provided services to more than 850,000 active lottery players across more than 45 charities and not-for-profits. It also has its own digital payments company.

Jumbo chief executive Mike Veverka said StarVale was identified as a significant opportunity because of its scale and leadership position in the charity lottery marekt.

“The acquisition helps accelerate our strategy to grow internationally and adds significantly more scale to our managed services business in the UK,” he said.

StarVale was expecting its 2021 earnings to be $119 million in total transaction value and adjusted net profit before tax of $3.8 million.

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