18th Oct 2005 08:12
HG Capital Trust PLC18 October 2005 The following is the text from a press release issued by HgCapital, whichmanages the investment portfolio of HgCapital Trust plc alongside those of otherclients. The trust, which participates in all of HgCapital's investments, willinvest £5.4 million in Sporting Index Group Limited. HgCapital wins the race for Sporting Index London, 18 October 2005. HgCapital, the European sector-focused private equityinvestor, today announced that it has agreed to acquire Sporting Index GroupLimited ("Sporting Index") from Duke Street Capital for a total cashconsideration of £75.8 million. Management will continue to manage the businessgoing forward and will retain a meaningful stake in the company. Founded in 1992, Sporting Index is the recognised leader in sports spreadbetting, with a market share of approximately 70% in the UK. It offers moremarkets (approximately 23,000), more fun bets and more choice than any othersports spread betting company. It is also the only sports spread betting companyto offer continuous 24 hour betting and sports spread betting on Sky TV.Furthermore, it has recently expanded its product portfolio by developing aunique range of spread betting games. Sporting Index's management team, led by Chief Executive Richard Glynn, has beensuccessful in restructuring the business over the past 3 years and in growingcustomer recruitment and bet volumes by approximately 50% and 37% respectivelyover that period. While recent historical focus of the company has been on the continued evolutionof the core UK sports spread betting business, HgCapital will now work closelywith management to leverage the strength of Sporting Index's core business, bothorganically and by acquisition, to build a broader-based betting and gaminggroup. This will involve not only the roll-out of the proven Sporting Indexsports spread betting model into new jurisdictions but also a further expansionof the product range, both domestically and internationally. This acquisition underlines HgCapital's commitment to, and expertise in, thegaming and broader leisure sector. HgCapital, until recently an investor inIrish bookmaker Paddy Power, has developed strong relationships in the gamingand gambling sector and is ideally placed to support Sporting Index's growth inthis exciting market. Ben Hewetson, Director and Head of Leisure Investments at HgCapital said:"Over the past 3 years, Sporting Index's management team has built a marketleading business which they have developed significantly, most notably in termsof distribution and product development. Over 70% of all bets are now placed viathe internet and the company continues to develop its distribution channels tomeet changing customer needs, as evidenced by the recent developments of its SkyTV and mobile telephone channels. The recently launched range of spread bettinggames is already showing good signs of growth. We believe that Sporting Index represents a robust base from which to build,both organically and by acquisition, a larger betting and gaming group, takingadvantage of the exciting growth opportunities in its target markets. We lookforward to working with management through the next phase of the company'sdevelopment." Richard Glynn, Chief Executive of Sporting Index said:"We are delighted to be working with HgCapital. It has a long and successfultrack record of working alongside leisure-related businesses. Their Leisure Teamhas demonstrated an excellent understanding of the potential of the business andshares our vision for the on-going growth of the group. We are confident thatthey are the right partner both for the business and for management and willprovide the support that we need to fulfil our ambitions for Sporting Index." - ends - Enquiries: HgCapital Sporting IndexBen Hewetson +44 (020) 7089 7888 Richard Glynn +44 (020) 7840 4068 Maitland Brunswick GroupSuzanne Bartch +44 (0)20 7379 5151 James Hogan +44 (020) 7404 5959Peter Ogden +44 (0)20 7379 5151 Ash Spiegelberg +44 (020) 7404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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