Australian betting tech firm BetMakers Technology Group is aiming to ‘supercharge’ its entry into the US sports betting market via the proposed acquisition of the Sportech PLC business for A$56.2m (US$41.3m).
The move was announced in a statement this week confirming that BetMakers has entered into binding agreements to acquire global assets of leading international online sports betting company Sportech PLC on a cash-free, debt-free basis.
It noted: “The proposed acquisition of Sportech’s Racing and Digital assets in the United States, United Kingdom and Europe is intended to accelerate BetMakers’ international growth plans with a significantly expanded global customer base and strategic position to fully capitalise on emerging opportunities in the US market, including fixed odds wagering.
“BetMakers considers the acquisition to be transformational for the company’s financial and growth prospects.”
The acquisition includes Sportech’s Americas Tote Business: providing betting solutions, hardware and operational services to over 200 racetrack, casino and betting venues to more than 50 customers across the US, Canada and Latin America.
Also included is the firm’s Americas Digital Business: providing white-label digital betting solutions to more than 25 customers across North America.
The proposed acquisition will, said BetMakers, deliver substantial revenues and EBITDA for its business. On a pro-forma basis for FY20, the Tote and Digital Business combined with BetMakers’ existing operations would have delivered A$56.1m revenue and A$7.7m EBITDA (compared with BetMakers’ stand-alone basis of A$9.2revenue and A$0.8m EBITDA).
The firm added that it expects to derive strong growth from the Tote and Digital Business, including from synergies and cross-selling opportunities that become available from the Sportech assets in combination with the existing BetMakers’ business.
BetMakers’ Managing Director Todd Buckingham said: “This acquisition will supercharge our entry into the US and position the company for substantial growth on the back of the emerging wagering opportunities in US racing, including fixed odds, where we believe we are well placed.
“The acquisition would give us a meaningful presence in the US, including in 36 of the States and across more than 200 venues, 25 digital outlets and 9,000 betting terminals. It will also greatly expand our global customer base across the UK, Europe and Asia and provides us with an opportunity to expand our product offering at scale in these and other regions.
“The acquisition of Sportech assets and the momentum we are seeing in the BetMakers’ business during this current financial year places the company in an extremely strong growth position.”
“Sportech has a brand that is world-renowned. We look forward to the opportunity to grow these valued businesses through an investment in technology and our knowledge and learnings from Australia to assist the current Sportech staff along with international racing bodies and wagering operators.
“Whilst the acquisition is subject to approval by Sportech’s shareholders and other customary conditions, we are pleased that the Board of Sportech has indicated it will recommend its approval.”
A meeting of Sportech’s shareholders to consider the acquisition is expected to take place in or around the week commencing December 21 2020. Sportech’s Board considers the acquisition to be in the best interest of its shareholders and intends to unanimously recommend in favor of the acquisition.
If the acquisition is approved at the meeting, BetMakers will pay Sportech A$11.2m as a non-refundable initial payment. The balance of the purchase price, A$45m, will be payable upon completion of the acquisition, which will occur following satisfaction of certain customary conditions.