Pollard Banknote Limited, a provider of licensed games, instant ticket products and full suite of digital offerings to more than 60 lotteries worldwide, has announced it has inked a definitive agreement to purchase all operating assets and business of Schafer Systems.
Coming it at an acquisition cost of $23.5m, finalisation of the deal, which is expected to be completed during the fourth quarter of this year, is subject to the relevant necessary closing conditions.
Founded 32 years ago, Schafer, whose line of products includes ticket dispensers and point of purchase displays for the lottery industries, has partnered with all 44 existing US lotteries and over 50 lotteries in other countries.
Commenting on the transaction, Don Hudak, CEO and president of Owner Revolution Inc, of which Schafer Systems is a subsidiary, commented: “The sale of Schafer to Pollard Banknote brings together two organizations that have successfully served the lottery and gaming industries for many years.
“Working together, they will represent a real powerhouse in the markets and will be able to bring innovative products and solutions to customers at an even higher level.”
Upon completion of the deal, Schafer’s management team is to continue in their current roles, and will work with Pollard “to ensure a smooth transition and integration to continue supporting the lottery industry”.
Doug Pollard, co-chief executive officer of Pollard Banknote, explained: “We are extremely excited about bringing the Schafer team into the Pollard organisation, and believe it will be a strategically important new product for us to help lotteries maximise their retail sales, and generate greater proceeds for their good causes.
“The addition of the world’s leading lottery retail dispensing experts is another key component in Pollard’s strategic focus on being the partner of choice for the lottery industry.
“We welcome our new team members from Schafer, and are confident their three decades of setting the standard with innovative leadership and award-winning products will continue to drive retail lottery excellence. This acquisition ticks all of the important boxes for us, both strategically and financially.”
John Pollard, co-chief executive officer of Pollard Banknote, added: “We are thrilled with the opportunity to join together with the Schafer team, and are confident that with the closing of this transaction Pollard will add another industry leading solution dedicated to helping our lottery customers succeed.
“Assisting lotteries in maximising their retail sales will also benefit our core instant-win scratch ticket sales, highlighting the strategic and financial benefits of bringing together a variety of lottery solutions in one organisation.
“Pollard Banknote’s commitment to grow our organisation both organically and through acquisitions will continue, and we look forward to continued success with Schafer.”