Australian lottery tickets retailer Jumbo Interactive Ltd. said Nov. 12 that it agreed to acquire U.K.-based lottery manager Gatherwell Ltd. for £5 million, paving its entry into the British lottery market.

Oxford-based Gatherwell, which was established in 2013, supports charitable causes by raising funds through lotteries. It currently sells about 130,000 tickets per week. Following the acquisition, Gatherwell is expected to contribute A$1.1 million in revenue to Jumbo for the five months to June 30, 2020, and A$3.5 million in revenue for the 12 months to June 30, 2021.

Jumbo founder and CEO Mike Veverka said the acquisition "will accelerate Jumbo's expansion of the Software as a Service business in the U.K." and help the company achieve its goal of generating $1 billion of ticket sales through the Jumbo platform by 2022.

Jumbo will pay ₤3.0 million in cash to Gatherwell under the terms of the deal. The company will pay an additional ₤2.0 million in cash if certain revenue and profit targets are met. Jumbo said it will fund the deal through internal cash sources.

Upon completion of the transaction, Veverka and Jumbo CFO David Todd will join Gatherwell's board, joining current directors Ben Speare and Martin Woodhead.

The deal is subject to approval from the U.K. Gambling Commission.