LONDON: Jumbo Interactive Limited has entered into a conditional Share Purchase Agreement to acquire lottery manager Gatherwell Limited, a private limited liability company located in Oxford, UK for ₤5.0million cash (A$9.1million).

The acquisition is subject to the UK Gambling Commission approving the Gatherwell change in control. Jumbo anticipates receiving a response from the UK Gambling Commission by 31 January 2020.

“Gatherwell is a successful UK-based external lottery manager and will accelerate Jumbo’s expansion of the Software as a Service business in the UK”, said Mr Mike Veverka, Founder and CEO of Jumbo Interactive Limited.

“This is an important step in building the SaaS Powered By Jumbo (PBJ) business segment, and in achieving our vision of $1 billion of ticket sales through the Jumbo platform by 2022”, he said.

The consideration is ₤3.0million (A$5.4million) in cash on acquisition to the Gatherwell Vendors. Further payments of up to ₤2.0million (A$3.7million) in cash are payable to the Gatherwell Vendors if certain Revenue and Profit targets are met, to be paid in up to two instalments following the 30 June 2020 and 30 June 2021 financial year ends.

Jumbo will fund this acquisition using internal cash sources.