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  • PointsBet Holdings’ (PBH) Irish subsidiary, Lockspell, has entered into a binding share purchase agreement to acquire Banach Technology
  • Lockspell will acquire Banach for US$43 million (around A$55 million) on a cash and debt-free basis
  • 55 per cent of the purchase price will be paid in cash, with the remainder in company shares, calculated using the 20-day VWAP
  • The company will also provide Banach with US$4 million (roughly A$5 million) in funding to assist in the conversion process of existing equity options
  • The company says it expects in-play wagering to represent around 75 per cent of all sports betting activity in the U.S. within three years
  • The transaction is expected to close in April 2021
  • PointsBet is down 1.67 per cent, trading at $14.17

PointsBet Holdings’ (PBH) Irish subsidiary, Lockspell, has entered into a binding share purchase agreement to acquire Banach Technology.

Banach is a Dublin-based provider of proprietary risk management platforms that supports pre-game and in-play betting products across a number of sports. The company comes with great experience in leading pre-game and in-play sports wagering markets.

The wholly owned subsidiary will acquire Banach for US$43 million (around A$55 million) on a cash and debt-free basis.

The purchase price will be paid 55 per cent in cash, with the remainder in company shares, calculated using the 20-day VWAP.

The company will also provide Banach with US$4 million (roughly A$5 million) in funding to assist in the conversion process of existing equity options. This amount will be retained by the PointsBet Group after the completion of the transaction.

PointBet says this acquisition will position itself as a leader of in-play sports wagering in the U.S., accelerating its technology roadmap, and placing the company in prime position to take advantage of the growth in sports betting activity in America.

Additionally, the company says Banach’s technology, which uses highly sophisticated risk management algorithms and deep trading experience, will allow Pointsbet to optimise its margins and offer superior value to its customers.

The company says it expects in-play wagering to grow exponentially. Within the next three years, in-play wagering is expected to represent around 75 per cent of all sports betting activity in the U.S.

Banach currently provides services to several of the world’s premium sports book operators, which PointsBet will continue to honour for the duration of each contract. The revenues from these contracts will assist in covering the overheads of the Banach business, namely staffing costs.

“We are delighted with the acquisition of Banach and that it’s well credentialled team have agreed to join PointsBet,” said PointsBet Group CEO and Managing Director Sam Swanell.

“In Banach we have found a like-minded team of technologists and the acquisition is a preferable approach to developing our in-play capabilities organically, given it allows us to dramatically ramp up our speed to market while still allowing us to own market leading technology and continue to control our destiny.”

As part of the transaction, senior members of the Banach team will be given new roles within the PointsBet Group. Each of the four members will receive 65 per cent of their transaction consideration as newly issued PointsBet shares

The transaction is expected to close in April 2021.

PointsBet is down 1.67 per cent, trading at $14.17 at 9:30 am AEDT.


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