Sports gaming company Sportech has agreed to acquire SGR, the racing business of US gambling concern Scientific Games Corporation, for up to $83 million (£51.4 million).

In addition to the acquisition, Sportech, listed on the main market of the London Stock Exchange, intends to raise £29.2 million in a placing at 50p a share. The proceeds will be used to finance the consideration unless the deal fails, in which case the capital will be used to reduce the company's liabilities. As part of the deal, New York-based Scientific Games Corporation will retain a 20 per cent stake in SGR.

Ian Penrose, chief executive of Sportech, said: 'As well as significant growth potential in those markets the combined group will have the scale and capability to compete in the rapidly growing gaming markets in the rest of the world.'

In the six months ending June 2009, Sportech reported a fall in revenue of 11 per cent to £32.4 million and an increase in pre-tax profits of 4 per cent to £5.1 million.