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JAXX PLANS SALE OF LOTTERY
1/19/2012 : JAXX PLANS SALE OF LOTTERY
State monopoly and a renewed focus on online gambling prompts company to offload lottery operations
Kiel-based financial holding firm JAXX SE has announced its entry into firm negotiations with a group of unidentified investors towards the sale of its lottery operations for a proposed consideration of Euro 12.5 million.
On completion of a deal, companies within the JAXX group will continue to supply various services such as customer service, IT support and payments and will remain involved in the future business development of lottery products.
The disposal will allow the company to focus on sports betting, casino and poker, largely carried by the myBet brand.
The deal includes the companies JAXX GmbH (Hamburg), JAXX GmbH (Lustenau, Austria), Vendo Spielsysteme GmbH (Lustenau, Austria), fluxx.com Telewette GmbH (Hamburg), JAXX UK Ltd. (London, GB) as well as certain assets of other group companies along with the JAXX domains, brands and rights relating to the JAXX name, but excludes JAXX's Spanish lottery business, which is operated by 70 percent owned subsidiary DIGIDIS S.L., Madrid.
"The disposal of the lottery business is the logical consequence of our decision to focus on our betting business and the myBet brand, which we took at the end of 2010," explained Mathias Dahms, management board spokesman of JAXX SE.
"The opening up of markets throughout Europe offer us excellent growth opportunities - above all for sports betting in Germany. On the other hand the lottery market will continue to struggle for as long as the State maintains its monopoly," he added.
Completion of the sale is expected by end February 2012.
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