Gtech to Take 90% Stake in St. Enodoc

Gtech, the U.S.-based subsidiary of Italy's Lottomatica, has agreed to take a 90 percent stake in St. Enodoc Holdings, parent company to St. Minver, the online operator.

For the stake, Gtech will pay 28 million euros, or $43.8 million, cash, on closing. The deal is expected to be finalized this quarter.

Additionally, Gtech could pay as much as 13.6 million euros, or $21.3 million, based on St. Enodoc's performance across 2008 and 2009.

In a prepared statement issued Thursday, Lottomatica said that 10 percent of St. Enodoc will remain with Gary Shaw, the group's founder and chairman, until 2012, at which point Shaw and Gtech "have the right to cause Gtech to acquire Mr. Shaw's shares."

Jaymin B. Patel, Gtech's president and chief executive, called the proposed acquisition a "logical fit" with the company's interests in expansion, particularly toward regulated Internet gambling markets.

"With more gaming markets around the globe approving and regulating interactive gaming channels, Gtech will be well positioned to provide a full-service solution or part thereof," said Mr. Patel.

Mr. Shaw said the deal would position St. Enodoc to leverage Gtech's "unrivalled international footprint," which has grown of late following its joint acquisition of Boss Media, the Sweden-based software developer, with Medströms.

"Given that St. Enodoc's strategy has always been to operate in markets where its offerings are legal and regulated, joining a truly global, highly-regulated business like Gtech made the most sense," he said.

St. Enodoc and the St. Minver brand will be maintained as a separate operation.

Lottomatica, listed in Milan, was down 0.29 euros, or 45 cents, to 20.31 euros, or $31.83.