Pollard Banknote to Acquire mkodo Limited

Pollard Banknote Limited announced that it has signed a definitive agreement to acquire 100% of the equity (“Acquisition”) of mkodo Limited (“mkodo”), a leading provider of digital apps and user interfaces for the lottery and gaming industry worldwide.  The Acquisition is subject to certain standard regulatory and third-party consents and is expected to close early in the first quarter, 2020.

mkodo is a global provider of licensed, omni-channel customer facing apps to the lottery, betting and gaming sectors.  The company was founded in 2001 and has been recognized for its core strength to develop and deliver successful digital experiences to the target audience of their customers’ online users.  mkodo’s clientele include a number of leading lotteries and gaming companies around the world, including the majority of the Canadian lotteries and some of the largest gaming operators in the UK.  With offices in England (London and Newcastle), mkodo employs approximately 60 full-time highly skilled staff working exclusively on digital app deployment for the lottery and gaming sector.

mkodo has proven experience in:

• Design, delivery & long-term support of digital user experiences for mobile and web applications;
• Design and development of engaging sports book and online bingo user interfaces for leading operators;
• Successful native iOS and Android app deployment in highly regulated global markets;
• Integration with multiple gaming and lottery systems via APIs (application programming interface) for full-service delivery;
• Provision of mobile and web app management services to client systems on their mCloud platform, including software for geolocation, authentication for users, device analysis, content management, and CRM;
• Integration with multiple providers of games and content to allow for robust menus of activities for the user; and
• Transformation of creative concepts into digital user experiences.

“We are very excited to have the talented mkodo team join Pollard and we look forward to their proven gaming focused technology and vast experience helping us broaden our portfolio of lottery and gaming solutions”, stated Doug Pollard, Co-Chief Executive Officer. “Working alongside our existing lottery resources within Pollard, we will be able to expand mkodo’s reach into some of the leading lotteries worldwide. At this current time of heightened digital focus and rapid development within lotteries and gaming organizations, being able to bring to our current and future customers the technological and customer facing expertise of mkodo is a game changer.  Particularly in light of ongoing regulatory changes in app requirements, mkodo and Pollard now stand ready to lead the lottery and gaming industry to first-in-class solutions in the mobile environment.”

Stuart Godfree, Managing Director of mkodo said, “We are excited to join the team at Pollard and look forward to expanding our reach in the gaming world in collaboration with our new colleagues.  Not only do we see a great cultural fit with the two organizations but joining the leading lottery partner will allow mkodo to take the next step in its ongoing evolution as the foremost supplier of mobile lottery solutions in the world.”

The Acquisition purchase price is £7.8 million (approximately $13.4 million CDN dollars using an exchange rate of $1.72 CDN dollar per pound sterling), prior to standard working capital adjustments and potential future earn-out payments based on certain EBITDA targets.  The purchase price will be funded from existing Pollard Banknote cash resources and availability under our existing senior credit facilities. 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, “The addition of the mkodo team to our organization is an important step in expanding our technological expertise and in particular complements our existing internal Pollard resources very well.  Their proficiency in sports book and online bingo development is an important addition to our product offerings.  Our strategic plan clearly articulates our focus on the lottery and related gaming sectors and the Acquisition supports this strategy.  Our industry leading digital solutions (including iLottery, second chance platform and loyalty programs) all rely on exceptional user interface experiences and the addition of mkodo’s world class mobile expertise will allow Pollard to greatly enhance our customers’ digital connection with their end users.”

Source: Pollard Banknote Limited