9th Sep 2015 12:42
LONDON (Alliance News) - Online gambling company Sportech PLC on Wednesday said its Sportech Inc subsidiary has partnered with MGT Capital Investments Inc and Viggle Inc to form DraftDay Gaming Group.
The newly-formed venture will acquire DraftDay, the third-largest operator in the daily fantasy sports industry in the US, from MGT. The venture will buy the company for nil consideration, in return for providing executive management and a potential customer network.
Sportech will get a 35% stake in the venture under the agreement and the deal will give it entry to the Daily Fantasy Sports market in the US.
"We are delighted to have expanded our product portfolio in the US into the rapidly growing Daily Fantasy Sports sector, in association with industry partners Viggle and MGT," said Chief Executive Ian Penrose.
Sportech shares were untraded on Wednesday, having last traded at 61.50 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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