Pollard Banknote announced today that it has signed a definitive agreement, and closed the transaction, to purchase 100% of the equity of Fastrak Retail (UK) Limited, 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 UK National Lottery, 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 UK 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 £4.0 million (approximately $7.0 million CDN dollars using an exchange rate of $1.75 CDN dollar per pound sterling), prior to standard working capital adjustments and potential future earn-out payments based on certain EBITDA and revenue targets. The purchase price was funded from existing Pollard Banknote cash resources and availability under our 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 concludes, “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.”