BetMakers Technology set to acquire Sportech PLC
While most ASX companies went quiet over the holiday period, BetMakers Technology Group was busy ticking off its checklist to acquire the global assets of the international online sports betting company Sportech PLC.
BetMakers announced the plans in early December to acquire Sportech’s Racing and Digital assets in the United States, United Kingdom and Europe with the intention of accelerating international growth plans. The purchase would provide a significantly expanded global customer base and strategic position to capitalise on emerging opportunities in the U.S. market, including Fixed Odds wagering.
The proposed acquisition is expected to deliver substantial revenues and EBITDA for BetMakers’ business. On a pro-forma basis for FY20, the Tote and Digital Business combined with BetMakers’ existing operations would have delivered $56.1 million revenue and $7.7 million EBITDA.
BetMakers expects to derive strong growth from the Tote and Digital Business, including from synergies and cross-selling opportunities that become available from the Sportech assets in combination with the existing BetMakers’ business.
Throughout the month the company has undertaken relevant due diligence, with the plans ultimately receiving the endorsement of the Board of Sportech PLC and subsequently BetMaker's shareholder approval. While funding arrangements in the form of a non-underwritten $10 million Share Purchase Plan and a $50 million Placement from sophisticated and institutional investors were also announced to the market in the last week.