BetMakers acquires Sportech for US expansion
The Australian firm has bought the firm’s tote and digital business in the US, Europe and the UK.
Australia.- Australian betting technology firm BetMakers has signed an agreement to buy the global operations of sports betting company Sportech PLC.
The transaction was closed at AU$56.2m (US$41.34m). The board at BetMakers Technology Group has recommended the deal, which will be considered at a meeting of shareholders on December 21.
The operation includes Sportech’s racing and digital assets in the United States, the United Kingdom and Europe.
The Tote Business in the US comprises betting solutions, hardware and operational services for over 200 racetrack, casino and betting venues and customers across the United States, Canada and Latin America.
The digital business provides white-label betting solutions to more than 25 customers in North America.
The UK and European unit offers betting technology, parimutuel and comingling services to more than 35 customers across the UK, Ireland, Europe and Asia.
The deal also covers QuantumTM Tote Technology, a tote betting engine used at events such as the Breeders Cup and Royal Ascot race meetings.
The acquistion is intended to accelerate BetMakers’ international growth plans, expandng its global customer base and capitalising on emerging opportunities in the US market.
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 company believes that for the full year 2020, the business combined with BetMakers’ existing operations would have delivered AU$56.1m in revenue and AU$7.7m in EBITDA, compared with BetMakers’ stand-alone basis of AU$9.2m revenue and AU$0.8m EBITDA.
If the acquisition is finally approved by the shareholders, BetMakers will pay Sportech AU$11.2m as a non-refundable initial payment. The balance of AU$45m will be payable upon completion.
The operation will be funded through a combination of existing cash assets and an AU$50m fully underwritten share placement.
