PointsBet, an ASX-listed sports betting operator, has announced that its Irish affiliate Lockspell has entered into a binding agreement (SPA) to acquire Banach Technology.
Dublin, Ireland-based Banach is a leading supplier of sports betting risk control services, trading tools, and bespoke wagering features such as cashout, acca builders, and build-a-bet products.
Aiming for accelerated US growth
PointsBet is bolstering its technological and trading capabilities as part of the deal, with the aim of accelerating growth within controlled US market states.
Pointsbet also agreed to pay $45 million for 55 percent of Banach’s shareholding in cash, with the remaining business stock to be compensated by a mutual share arrangement.
Sam Swanell, Group CEO and Managing Director of PointsBet said: “We are delighted with the acquisition of Banach and that its well credentialed team have agreed to join PointsBet.
“As legalisation to approve US sport betting accelerates across the US, it has become clear that the in-play opportunity will be very significant and those with the best depth and breadth of product will win.”
Over the next three years, in-play wagering is projected to account for 75 percent of all sports betting activity in the United States, so PointsBet’s purchase of Banach’s in-play technology will greatly improve its stateside operations.
Despite its origins in Australia, PointsBet is now based in Denver, Colorado, and operates in six US states, with market access deals in another six.
The acquisition of Banach is expected to allow PointsBet to ‘promise achieved margin and deliver superior value to its customers’ in the American sports betting market.
Technology at the forefront
Swanell continued: “Technology is at the forefront of everything we do at PointsBet and we have undertaken an in-house approach to proprietary technology as the key priority.
“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.”
Banach will receive US$4.0 million in financing as part of the takeover – which will be held by PointsBet upon conclusion of the sale – to help the firm convert its current stock options.
Mark Hughes, CEO of Banach said: “I am extremely proud of the business and team we have built over the last few years.
“We could not be more excited about the burgeoning US opportunity and the role that the Banach team will play in accelerating and strengthening PointsBet’s pre-game, in-play and free-to-play offering in the United States. It is great to be part of such a forward-thinking global organisation.”
Hughes will lead PointsBet as Group Chief Operating Officer, with additional Banach employees Alex Zevenbergen, Vice President of Engineering, Trading Platform; Hadrien Lepretre, Vice President of Quantitative Analytics; and Rob Reck, Product and Technology Adviser.