Internet gambling software group World Gaming plans a £7 million placing and a £30 debt raising to fund buying Sportsbetting.com.

World Gaming, which was floated on AIM in May by broker Daniel Stewart, contemplates paying up to $96 million (£56.5 million), roughly the same as its current stock market price tag, for Sportsbetting.com, which is the largest licencee of its services. The deal, which counts as a reverse takeover, will provide WorldGaming with the chance to accelerate its growth, according to chief executive Daniel Moran.

World Gaming, whose first-half pre-tax profits fell from $3.7 million (£2.17 million) to $1.2 million on turnover halved to $4.8 million, has agreed to pay $54 million (£32 million) now, three quarters in cash and one quarter in shares, for Sportsbetting.com, an operator of online sports betting and casino activities. Under the deal, World Gaming will make further staged payments of $42 million between now and next October if Sportsbetting.com meets certain commercial and financial targets.

The maximum will be payable if Sportsbetting.com achieves pre-tax profits of at least $15 million (£8.8 million). The minimum World Gaming will have to pay under the formula is $72 million (£41 million).

To help finance this, World Gaming proposes to raise £7 million – before hefty £1.6 million expenses – in a placing at 125p, handled by Daniel Stewart. That compares with May's float price of 53p, September's peak of 215p and today's 148.5p, down 19p this morning.

World Gaming also intends to raise debt of up to $50 million (£29.4 million) and enter into a conditional debt facility. It could prove a successful deal, but don't put your shirt on it.