GGRAsia – China LotSynergy pays US$10 mln for lottery system provider

China LotSynergy pays US$10 mln for lottery system provider

Dec 16, 2014 Newsdesk Industry Talk, Latest News, Rest of Asia

Hong Kong-listed China LotSynergy Holdings Ltd, a provider of technology and services to mainland China’s lottery market, announced the acquisition of Beijing Bestinfo Cyber Technology Co Ltd, a Beijing-based provider of lottery systems. The firm paid RMB60 million (US$9.7 million) via one of its wholly owned subsidiaries, Beijing Kexun Tiandi Technology Co Ltd.

“Management believes that this will enable the group to further consolidate its presence at all levels of the lottery value chain,” China LotSynergy said in filing on Monday.

Bestinfo specialises in the research and development of lottery transaction and management systems. The company is described as offering a wide range of lottery industry solutions, including lottery transaction systems, data mining and analyses systems, data storage and backup, data encryption and system integration implementation.

Bestinfo is credited with establishing the first computer ticket game (CTG) hotline system in Dongguan, Guangdong province, and the first hotline CTG sales system in China, implemented in Zhejiang province.

According to Monday’s filing, Bestinfo also developed the first nationwide standard version of the provincial CTG sales and management system under the commission of China Welfare Lottery Administration Centre, which operates in the provinces of Guangdong, Shanxi and Fujian.

Currently, Bestinfo is the Welfare CTG hotline sales system provider for Guangdong Welfare Lottery Centre, which is welfare lottery’s largest provincial lottery authority by sales.

Welfare lottery sales reached RMB168.2 billion in the calendar year to October 31, up by 17.2 percent from a year earlier. Sales of welfare lottery tickets accounted for 53.9 percent of all lottery sales in mainland China in the first 10 months of 2014.

Prior to the acquisition, Bestinfo had established a technical services collaboration with a China LotSynergy’s subsidiary, Guangzhou San Huan Yong Xin Technology Co Ltd. The two companies jointly provide CTG hotline sales system services, lottery terminals and other related services to Guangdong Province Welfare Lottery Centre.