Fanatics Betting and Gaming to acquire PointsBet US
Fanatics is a big sports company that is specialized in -and sells- sport products. The company has signed a deal to acquire the US arm of PointsBet Holdings for 150 million dollars. PointsBet Holdings is a company that offers online and real life betting on sports and casino’s.
Wether the deal will be approved by the stakeholders or not remains to be seen. There are several authorities that must also sign for approval. PointsBet will retain its operations and assets in Australia and Canada and continue to operate as a listed company in Australia.
PointsBet will keep on having her own platform for sportsbetting, races and igaming and will be granted a lifetime royalty-free license. They will keep using their own technology for online sportsbetting and may also use the Banach technology, which is bought in march 2021.
The employees in Australia, Canada and India need not fear losing their jobs. As do the technical experts, traders and quants that work in Australia.
Further, PointsBet will provide services for Fanatics Betting and Gaming (FBG) till the deal is official. PointsBet will be paid by FBG for these services.
Furthermore, PointsBet will transfer their existing contracts with NBCUniversal to FBG, while NBCUniversal will release PointsBet from their warranties under their media services contract and waive its right to exercise previously granted stock options.
The shareholders from PointsBet will vote at the end of June for the proposed acquisition. The board of directors from PointsBet recommends the shareholders to vote in favor of the acquisition.
If the deal goes through, PointsBet will pay the shareholders the money that they got from the sale of the company together with most of the cash reserves they no longer need for the remaining business. This payout is estimated at about AU$1.07 to AU$1.10 per share. This is amount is after tax deduction and expenses.
Best option for Shareholders
“The board has looked at various strategic opportunities for the American market where the company has significant opterations” Said Brett Paton, PointsBet’s President.
“After considering all possible options for the company, the board decided that the proposal from Fanatics Betting and Gaming is the best option for the shareholders”
“The sale of our U.S. operations to Fanatics Betting and Gaming gives PointsBet the space to return a lot of money to the shareholders, while we remain our strong activities in Australia and Canada, which are supported by our own technology, in an environment where we do not need a lot of capital.”
Sam Swanell, general director and part CEO of PointsBet, added to that that this deal is the most beneficial for the shareholders compared to the other options we had.
“Fanatics Betting and Gaming sees our company due to our strategy, technology and team as a platform for their own expansion in the world of online sports betting and igaming,” Swanel Said. “Given their big role in the U.S. Sports market Fanatics is a logical acquirer for our operations in America.”
“In addition, the proposed transaction would help the company reduce the risks and capital needs associated with pursuing their strategy in the United States.”
Fanatics’ expansion
The deal comes at a time when Fanatics is continuing to develop its sports betting business in the U.S., having established its Fanatics Betting and Gaming online and retail sports betting division in January.
The division began offering sports betting at the Washington Commanders’ FedExField in January, making it the first sports betting office in the National Football League stadium.
Since then the gambling and gaming division has joined the international betting integrity association (IBIA) and expressed support for the responsible gambling collaborative (RGC).
According to recent media reports, the company plans to launch online sports betting in several states, such as Ohio and Tennesee.
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