Canadian firm Contagious Gaming confirmed that it has entered into talks with Sportech over a potential merger to create a “combined, technology-focused, sports wagering company”.
Contagious Gaming stated that it had made its proposal under the City Code on Takeovers and Mergers.
Under the takeover code the company must either make a firm intention to make an offer by September 11, or walk away.
Contagious Gaming said the talks are based around a cash-and-share offer, which is likely to have to be higher than Sportech’s share price on August 13 of 62.63p.
“There can be no certainty that the submission of the proposal will lead to Contagious Gaming making a formal offer or, in turn, the completion of the business combination,” Contagious Gaming said in a statement.