UPDATE 1-Sportech buys SGR betting unit for up to $83 mln

* To pay initial $65 mln to Scientific Games in cash, shares

* To raise 29.2 million pounds in a placing, open offer

* Playtech to take 9.99 percent stake in enlarged business

(Adds detail, background)

LONDON, Jan 27 (BestGrowthStock) – British gaming company Sportech
(ROD.L: ) is buying racing and venue management business SGR from
U.S. group Scentific Games Corp (SGMS.O: ) for up to $83 million
in cash and shares to become a world leader in pools betting.

Sportech said on Wednesday it would pay an initial $65
million, followed by $10 million on Sept. 30, 2013, and up to $8
million if SGR meets its targets over the next three years.

Pools, or pari-muteul, betting is a gambling system in which
all bets of a particular type a placed in a pool and payout odds
are calculated by sharing the pool among all winning bets.

This differs from fixed-odds betting, where the payout is
agreed at the time the bet is sold.

“This is a transformational transaction for Sportech. It
catapults the business onto the international stage,” chairman
Piers Pottinger said.

Sportech said the initial sum would comprise $32.9 million
in cash and 39.74 million Sportech shares issued at 50 pence
apiece, which will give Scientific Games a 19.99 percent stake
in the enlarged group.

Sportech said it also planned to raise 29.2 million pounds
($47 million) in a fully-underwritten placing and open offer of
58.4 million shares, also priced at 50 pence.

Gaming software firm Playtech (PTEC.L: ) said it would buy
19.88 million of the shares, giving it a 9.99 percent stake in
the enlarged group, adding it had signed a letter of intent to
provide products and services to the SGR business.

Investing Analysis

(Reporting by Mark Potter; Editing by Dan Lalor)
($1 = 0.6195 pound)

UPDATE 1-Sportech buys SGR betting unit for up to $83 mln