HeadsUp Closes Acquisition of Spinola Gaming for Global Expansion, Over $150M in Revenue from Deals

Online game operator and media company HeadsUp International Entertainment announced on Tuesday has reached a major milestone with the acquisition of lottery software provider Spinola Gaming. The business has ended the purchase of all previous third-party interests in the group, takeover of 100% of Spinola and its assets.

This step now allows HeadsUp to enter into and finalize definitive agreements for the full acquisition of Spinola and its related companies, HeadsUp said. The repurchase of these shares was imperative for the company to acquire 100% of the company and its assets, which include licenses to operate in various European, Latin American and other regulated markets. Financial terms of the purchase were not disclosed.

The complete acquisition of Spinola is integral part of HeadsUp’s overall strategy in the charity, lottery and gaming space. The takeover of the brand should not only allow HeadsUp to expand into new markets, but also execute its existing strategies with its full suite of lottery, instant win and charity fundraising solutions.

Independent assessments completed by HeadsUp concluded that the value of deals currently in place has the potential to generate over $150 million in revenue, with still room to develop this with new contracts currently being negotiated. “The value of the Spinola acquisition is substantial, with HeadsUp’s management engaging two independent valuations during the due diligence process which amounted to $65 million and $72 million,” the company explained.

Spinola’s current contracts cover key market operations in Colombia, Peru, Brazil and other Latin American markets. These regions represent the strongest growth for lotteries and one of the greatest opportunities for Spinola/HeadsUp“, claims the company. In addition to Latin America, Spinola has new projects scheduled for release in the fourth quarter of 2022 in 6 African countries and a first national lottery product in the United Arab Emirates.

The recent acquisition of LotteryHUB in June of this year, in partnership with Spinola Products and Services, will now see LotteryHub become “the world’s leading global lottery marketplace solution with key partnerships sought for various operations based in Europe, Asia-Pacific and the United States,” says HeadsUp.

The global lottery industry currently generates approximately $300 billion in annual revenue and 95% of these transactions still take place at physical outlets.“, emphasizes the HeadsUp team. “With the increase in online activity and e-commerce on a global scale, this presents an exceptional growth opportunity, as more and more state and national operations move into the online space as a natural progression to their existing business models.”

It is expected that the value of online activity worldwide will reach 15-20% in the next few yearsthus representing a potential market share opportunity of approximately $45-60 billion in annual online lottery transactions.

HeadsUp is now excited to start announce a substantial number of contracts under the Spinola agreement which represents previously announced expected revenue and earnings, plus additional contracts that management has entered into in the past 45 days,” the company said.

HeadsUp Entertainment International will now facilitate its requirements to file fully audited financial statements and then file a registration statement, with all of the information required by regulators, including the Alberta Securities Commission. This will allow the consolidation of these assets and others soon to be announced by acquisition in a fully declaring vehicle, which should have the required assets and earnings to qualify for full NASDAQ listing.

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