In a move intended to ‘supercharge’ its entrance into the US, BetMakers has entered into binding agreements to purchase global assets from multinational online sports betting firm Sportech for AU$56.2m.
The transaction involves an American tote business that offers betting solutions, hardware and operating services to more than 200 racetrack, casino and betting locations to more than 50 customers in the United States, Canada and Latin America, finding the acquisition to be transformative for the company’s financial and growth prospects.
The deal also involves a digital company that provides more than 25 customers in North America with white-label betting solutions; a UK and European tote company that serves more than 35 customers across the UK, Ireland, Europe and Asia; and Quantum tote technology.
Todd Buckingham, BetMakers’ managing director 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.”
The proposed acquisition of Sportech’s US, UK and European racing and digital properties is intended to accelerate the international growth plans of BetMakers, through a substantially expanded global customer base and strategic position to fully capitalise on emerging US opportunities.
BetMakers argues that the transaction would produce significant revenue and EBITDA, noting that AU$56.1 million in revenue and AU$7.7 million EBITDA (compared to BetMakers’ stand-alone AU$9.2 million revenue and AU$800,000 EBITDA) will have been generated by the tote and digital sector, combined with current operations, on a pro-forma basis for FY20.
Buckingham added: “BetMakers believes its approach to technology innovation, integrity and servicing customers with wagering solutions can help grow racing globally for everyone in the ecosystem.
“This includes racing bodies, participants and wagering operators as well as power the excitement of racing as the leading option in a competitive sports betting market.
“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.”