Jumbo agreed to acquire 100% of Stride for a cash consideration of $11.7m (£9.3m/€10.9m) in August last year. This strategic move aligns with Jumbo’s international expansion strategy, following its previous acquisition of Gatherwell in November 2019.
The acquisition was initially expected to be completed before the end of 2021. However, due to delays in the approval process, Jumbo announced in December that the completion would be pushed to the fourth quarter of its 2021-22 financial year, which ended on June 30.
The approval of the deal required clearance from both Alberta Gaming, Liquor and Cannabis (AGLC) and the Saskatchewan Liquor and Gaming Authority (SGLA). Extensive checks by these regulators caused a delay in the process.
Fortunately, Jumbo recently received clearance from both AGLC and SGLA, allowing the deal to be completed late last week. Stride, based in Calgary, serves over 750,000 active lottery players in Alberta and Saskatchewan provinces. With this acquisition, Jumbo makes its entry into the Canadian charity lottery market for the first time.
It is expected that Stride’s contribution to Jumbo’s earnings for the 2022 financial year will not have a significant impact.
