Pollard Banknote has completed the previously announced £7.8m (CDN $13.4m) acquisition of digital products provider mkodo.

The firm signed a definitive agreement to acquire 100 per cent of the equity of mkodo, a provider of digital apps and user interfaces for the lottery and gaming industry, on December 2, 2019. The acquisition was subject to certain standard regulatory and third-party consents which have now all been obtained.

The acquisition purchase price of £7.8m is prior to standard working capital adjustments and potential future earn-out payments based on certain EBITDA targets.

The purchase price will be funded from existing Pollard Banknote cash resources and availability under our existing senior credit facilities. The acquisition 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 complete the acquisition of mkodo and move into the integration phase of combining these two strong organisations”, stated Doug Pollard, co-chief executive officer.

“mkodo are world leaders in the digital user experience in the lottery and gaming industry. We look forward to leveraging their expertise to help our customers build effective, direct connections with their player base.”

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 when the deal was first announced: “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.”