Australian lottery giant Tatts Group Ltd has acquired a 15 percent stake in internet lotteries business Jumbo Interactive Ltd for A$15.7 million, according to a filing from Tatts last week to the Australian Stock Exchange.
Last week, Tatts purchased 6.6 million newly issued Jumbo shares at A$2.37 per share, with a 12-month option to acquire another 3.5 million shares at the same price, subject to shareholder approval.
The deal also extends all of Tatts’ current reseller agreements with Jumbo (in NSW, VIC, SA, N.T. and Fiji) for five years, with further provisions to continue beyond 2022.
Under the agreement, Tatts will also provide an expanded product portfolio to include the popular “Set for Life” game.
The reseller agreements will include termination rights for Tatts, allowing the company to terminate each of the reseller agreements under certain conditions.
“These new arrangements strengthen the long-standing commercial relationship between Tatts and Jumbo,” said Tatts in a statement.