Mr. Doug Pollard reports
POLLARD BANKNOTE ANNOUNCES THE ACQUISITION OF FASTRAK RETAIL
Pollard Banknote Ltd. has signed a definitive agreement and closed the transaction to purchase 100 per cent of the equity of Fastrak Retail (U.K.) Ltd., a leading provider of lottery ticket dispensers, lottery play points and other retail merchandising products based in the United Kingdom.
Fastrak was founded in 2000 and has built its award-winning focus on the lottery market, producing innovative industry-leading merchandising solutions. Fastrak provides its products and services to a number of major international lotteries, including the United Kingdom National Lottery and the Irish Lottery, and was recently awarded a major contract for the Illinois Lottery. Well known for its innovation, engineering design, and research and development, Fastrak also provides retail point-of-sale display solutions for some key non-lottery organizations, including global brands and some of the top consumer products in the United Kingdom. Based near Manchester, England, Fastrak employs approximately 20 full-time employees while leveraging long-term outsourcing relationships to scale up quickly for large contracts.
"We are thrilled with this acquisition of Fastrak and are confident it will deliver additional innovation and new international markets for our retail merchandising solutions," said Doug Pollard, co-chief executive officer of Pollard. "Fastrak, working alongside our existing operations of Schafer Systems, will provide a global approach to providing state-of-the-art retail and merchandising solutions to lotteries across the world. Leveraging the best ideas of both organizations will ensure the superior marketing concepts are delivered to each and every lottery organization. In addition, working together with Pollard's instant ticket resources and other areas of our business will allow Fastrak to benefit from this expertise in helping to develop new and exciting lottery retail solutions."
John Barrett, managing director of Fastrak Retail, said: "Joining the Pollard group will strengthen Fastrak's offering to the lottery market and provide the support required to expand Fastrak to the next level. Additionally, it will help the business offering to expand its markets in Europe and the United States. Fastrak's operation in the U.K. will be a great asset and stepping stone into Europe for the Pollard group and will add additional design and manufacturing resources as and when required."
The acquisition purchase price is four million British pounds (approximately $7-million using an exchange rate of $1.75 per British pound), prior to standard working capital adjustments and potential future earnout payments based on certain EBITDA (earnings before interest, taxes, depreciation and amortization) and revenue targets. The purchase price was financed from existing Pollard Banknote cash resources and availability under the company's existing senior credit facilities, and the acquisition is expected to be accretive to Pollard Banknote's net income prior to amortization of related purchase price accounting adjustments.
John Pollard, co-chief executive officer, concluded: "This acquisition continues Pollard Banknote's commitment to grow our organization both organically and through acquisitions to expand our leadership role as partner of choice in the lottery and charitable gaming sectors. We are very pleased that Fastrak has joined our team and look forward to helping them expand their business."
About Pollard Banknote Ltd.
Pollard Banknote is a leading lottery partner to more than 60 lotteries worldwide, providing high-quality instant ticket products, licensed games, Schafer Systems retail merchandising solutions and a full suite of digital offerings, ranging from game apps to comprehensive player engagement and i-lottery solutions, including strategic marketing and management services. Pollard Banknote also provides pull-tab tickets, bingo paper, and its Diamond Game- and Oasis-branded electronic ticket machines to charitable and other gaming markets in North America.
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