(Hamburg, 13 October 2014) Lotto24 AG is planning to insource its IT platform, i.e. take over development of its operating software and IT operations by no later than 31 December 2015, and has made the corresponding arrangements with its current IT service providers. Lotto24 is to set up its own IT department, which will also include experienced staff from the current IT service providers. In accordance with the existing contractual terms, Lotto24 AG will receive the necessary software for its IT operations free of charge.
All in all, the positive effects of the transaction – resulting among other things from reduced costs for the technical processing of gaming operations and IT development – will more than compensate for the additional personnel expenses in the medium term. If necessary, the additional funding requirement of around 3 million euros (which will be mostly incurred in fiscal year 2015) can be covered by a vendor loan of the same amount. Lotto24 AG believes that the move will ensure its long-term independence and control over the strategically important field of IT and that its systems operations in Germany will also prepare the path for further B2B and business services. Moreover, Lotto24 AG expects that insourcing will enable it to meet its development needs more flexibly, quickly and simply in future.
