Weather Lottery nets Devil Fish to extend sector reach

The Doncaster-based company said it has entered into a conditional agreement to buy Devil Fish for 40,000 in cash and 290,000 in shares some 30m new shares.

TWL chairman Tim Razzall said: "Devil Fish Poker has an established brand name in a sector which is complementary to the existing gaming operations of TWL.

"We have a growing database of users in both FCBetz.com and FC Lotto some of whom will we believe wish to take advantage of the DFP products.

"The board considers its acquisition at a time when there is still considerable untapped potential for development fits in with our gaming strategy."

TWL expanded into online gaming in July, establishing the brand name FC BETZ.com, to complement its established lottery management business.

At the time it signed a multi-year contract with Coventry City Football Club to become its gaming partner, and has since signed contracts with a number of other football clubs.

The firm said the Devil Fish acquisition is part of its "strategy to reinvigorate TWL", providing a "significant and exciting opportunity" to bring together its gaming interests trading under the FCBetz.com brand.

Devil Fish was founded by Hull poker professional Dave Ulliott, a colourful character renowned in gambling circles.

It is a subsidiary of Devilfish Gaming Plc, which is traded on PLUS-Quoted, an unlisted securities exchange.

In the year to the end of June 2010, Devil Fish made operating losses of 106,331 on turnover of 783,353. At that date it had net liabilities of 10,802.

TWL said the Devil Fish brand is recognised nationally and internationally, especially in Europe, and believes it can benefit from "the undeveloped potential to promote and exploit the brand".

It will target existing players as well as thousands of names registered on the Devil Fish database. TWL said there is potential for "significant international growth" based on the Devil Fish brand, such as further expansion into Asia and the United States.

"In addition there is the clear opportunity of significant cross selling of FCBetz.com products and the Devil Fish Poker brand into each other's respective databases," said the company.

"The board believes that this, coupled with a reduction in overhead of DFP by consolidating its marketing through TWL's existing channels, will bring long-term financial benefits and accelerate the board's strategy to become a significant operator in the online gambling sector."

TWL added its primary aim is growing shareholder value via acquisitions and organic growth.