Canadian software outfit Contagious Gaming has made a bid to acquire Liverpool-based pools betting operator Sportech.

On Friday, Sportech confirmed recent media speculation by announcing that Contagious was kicking Sportech’s tires. The firm went on to say that any recommended offer – the bulk of which would be made in cash with the remainder in Contagious shares – would come at a premium to Thursday’s closing share price, which valued Sportech at 62.6p.

The proposal is contingent on Contagious being able to secure sufficient financing and a majority of Sportech shareholders thinking it’s a good idea. Sportech cautioned that there’s no guarantee any formal offer will actually be forthcoming. Sportech’s shares rose over 11% to 69.6p on Friday as news of the takeover bid spread.

In the event that a formal bid is made and accepted, Sportech said that its existing shareholders would receive “approximately half” of the potential net proceeds of the company’s long-running back-and-forth legal fight with the UK taxman over a £97m VAT repayment on Sportech’s Spot The Ball game. The balance of any VAT windfall would go to the enlarged Contagious Gaming group.