- Consumer stock BetMakers Technology Group (BET) has agreed to buy part of online sports betting company Sportech for just over $56 million
- Notably, the purchase will grow BetMakers' presence in the U.S., U.K., Europe, and Asia
- However, for the deal to go through, Sportech shareholders must approve the buy
- To pay for the purchase, BetMakers is aiming to raise $60 million via a placement and share purchase plan
- The offer will see BetMakers shares priced at 60 cents each, representing a 9.1 per cent discount to their last close price
- On the market today, BetMakers is up 1.52 per cent and is trading for 67 cents per share
Consumer stock BetMakers Technology Group (BET) has agreed to buy part of online sports betting company Sportech for just over $56 million.
The company will purchase Sportech's racing and digital assets in the United States, the United Kingdom, Europe, and Asia. The acquisition aims to speed up BetMakers' international growth plans.
According to BET, the purchase will generate substantial revenues and earnings before interest, taxes, depreciation, and amortisation (EBITDA) for its business.
On a pro-forma basis, the combined companies would have delivered $56.1 million in revenue and $7.7 million in EBITDA in FY20.
"This acquisition will supercharge our entry into the U.S. and position the company for substantial growth on the back of the emerging wagering opportunities in U.S. racing, including Fixed Odds, where we believe we are well placed," Managing Director Todd Buckingham said.
Thanks to the purchase, BetMakers will cement its presence in 36 U.S. states across more than 200 venues.
"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, Todd told the market.
However, for the purchase to be completed, it needs to be approved by Sportech's shareholders, with a meeting to secure this planned just before Christmas.
To pay for the purchase, BetMakers is aiming to raise $60 million via a placement and share purchase plan.
The capital raise will see its shares offered at 60 cents each, representing a 9.1 per cent discount to the company's November 30 close — priced at 66 cents per share.
"Sportech has a brand that is world-renowned," Todd said.
"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," he added.
On the market today, BetMakers is up 1.52 per cent and is trading for 67 cents per share at 9:59 am AEDT.