Australian race betting operator BetMakers plans to boost its US presence by acquiring the Global Tote business from UK operator Sportech.

On Tuesday, the Bristol-based Sportech announced that it had reached a £30.9m deal to sell its Global Tote pari-mutuel technology division to Betmakers Technology Group. The announcement came just days after media reports speculated that the financially struggling Sportech was flogging its Tote operations.

The deal will see BetMakers pay 20% of the deal price as a non-refundable initial payment once BetMakers shareholders voice their approval. The balance is due when regulatory approvals are secured, which the parties expect will occur in H1 2021.

Global Tote has clients in 37 different markets who handled a combined US$12.2b in racing wagers last year, from which the unit derived revenue of £30.8m, earnings of £5.6m and a pre-tax loss of £800k. Over the first half of 2020, the Global Tote’s revenue totaled £12m, with earnings of £1.6m and a pre-tax loss of £1.2m.