Lottery solutions provider Pollard Banknote has struck a deal to acquire London-based mobile app developer Mkodo for an initial purchase price of £7.8m.
The deal will further expand Pollard’s range of products, and make Mkodo’s solutions available to its client base, which today comprises more than 60 lotteries worldwide.
It currently provides instant tickets, licensed games, retail merchandising systems and a range of digital products such as ilottery solutions, app development, as well as marketing and management services.
The £7.8m purchase price is accompanied by potential earn-out payments based on Mkodo meeting future earnings targets, and the transaction remains subject to regulatory and third-party approvals.
“We are very excited to have the talented Mkodo team join Pollard and we look forward to bringing their proven gaming focused technology and vast experience to the lottery industry and other markets,” said Pollard Banknote’s co-chief executive officer Doug Pollard.
Pollard explained that by leveraging its existing resources, the supplier would be able to extend Mkodo’s reach into some of the leading lottery operators around the globe.
“At this current time of heightened digital focus and rapid development within lotteries and gaming organizations, being able to bring to our current and future customers the technological and customer facing expertise of Mkodo is a game changer,” he continued. “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 already works with a number of leading lottery operators, including Canadian provincial operators Atlantic Lottery Corporation and British Columbia Lottery Corporation, as well as Denmark’s Danske Spil. It is also an associate member of the World Lottery Association.
Its co-founder and majority shareholder Sue Yoxall said that having grown the business organically over the past 18 years, Pollard Banknote was an “excellent fit” to develop the business further.
“We believe that together we will be able to leverage our complementary capabilities to bring innovative and exciting digital products and apps to the global lotteries industry,” Yoxall said.
Her fellow co-founder Stuart Godfree added: “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.”