Sportech has entered into exclusive talks with private equity firm Burlywood Capital to sell the Football Pools for £97.25m.

The deal for the world's oldest football gaming company will be bankrolled through a combination of debt and equity, with Sportech saying the deal 'represents an attractive opportunity' following a modernisation programme.

The company revealed that Burlywood's management team has proposed setting up a new AIM-listed company, chaired by Sportech's former chief operating officer Ian Hogg, which will then acquire the Pools.

Last month Sportech said that operating profit for the Liverpool-based Pools came in at £7m.

Sportech consists of three divisions - Sportech Racing and Digital, Sportech Venues and The Football Pools.