Pollard Banknote has entered into an agreement to purchase digital products provider mkodo for £7.8m (CDN $13.4m), prior to standard working capital adjustments and potential future earn-out payments based on certain EBITDA targets.
The Winnipeg, Canada, headquartered firm expects to complete the purchase towards the early part of 2020’s first quarter, subject to regulatory and third-party consents. The purchase is expected to be accretive to Pollard Banknote’s net income prior to amortisation of related purchase price accounting adjustments.
“We are very excited to have the talented mkodo team join Pollard and we look forward to their proven gaming focused technology and vast experience helping us broaden our portfolio of lottery and gaming solutions,” stated Doug Pollard, co-chief executive officer of Pollard Banknote.
“Working alongside our existing lottery resources within Pollard, we will be able to expand mkodo’s reach into some of the leading lotteries worldwide. At this current time of heightened digital focus and rapid development within lotteries and gaming organisations, being able to bring to our current and future customers the technological and customer facing expertise of mkodo is a game changer.
“Particularly in light of ongoing regulatory changes in app requirements, mkodo and Pollard now stand ready to lead the lottery and gaming industry to first-in-class solutions in the mobile environment.”
Founded in 2001, mkodo counts a variety of global lotteries and gaming firms among its clientele and boasts a roster of 60 full-time employees working exclusively on app deployment in the aforementioned sectors.
Stuart Godfree, managing director of mkodo, said: “We are excited to join the team at Pollard and look forward to expanding our reach in the gaming world in collaboration with our new colleagues.
“Not only do we see a great cultural fit with the two organisations but joining the leading lottery partner will allow mkodo to take the next step in its ongoing evolution as the foremost supplier of mobile lottery solutions in the world.”
John Pollard, co-chief executive officer of Pollard Banknote, concluded: “The addition of the mkodo team to our organisation is an important step in expanding our technological expertise and in particular complements our existing internal Pollard resources very well.
”Their proficiency in sportsbook and online bingo development is an important addition to our product offerings. Our strategic plan clearly articulates our focus on the lottery and related gaming sectors and the acquisition supports this strategy.
“Our industry leading digital solutions (including iLottery, second chance platform and loyalty programs) all rely on exceptional user interface experiences and the addition of mkodo’s world class mobile expertise will allow Pollard to greatly enhance our customers’ digital connection with their end users.”