PointsBet announced that its Irish subsidiary, Lockspell, would acquire Banach Technology Limited. Banach is a Dublin-based provider of risk management platforms and quantitative driven trading models that support complex pre-game and in-play betting products across numerous sports, including the four major American sports and international soccer.
The acquisition aims to position PointsBet as a leader of in-play sports wagering in the United States, just as in-play wagering is expected to grow exponentially. Within the next 3 years, in-play wagering is expected to represent circa 75% of all sports wagering activity in the United States.
The acquisition accelerates PointsBet’s technology roadmap and helps to take advantage of the growth in sports betting activity in the United States. Through sophisticated risk management algorithms and trading experience, Banach’s technology will allow Pointsbet to optimise margins and offer better value to customers.
Banach was founded by Rob Reck, Mark Hughes, Alex Zevenbergen and Hadrien Lepretre, all of whom played a role in establishing the Quants department at Paddy Power. Banach has a team of 40 technology and product staff with experience creating products for use in mature and sophisticated sports wagering markets.
The Banach team particularly experienced in leading pre-game and in-play sports wagering markets, having previously established the Quants division of Paddy Power Plc (now Flutter Entertainment Plc).
Commenting on the transaction, PointsBet’s Group CEO and Managing Director Sam Swanell said: “We are delighted with the acquisition of Banach and that its well credentialled 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. 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”.
PointsBet will acquire Banach for US$43m on a cash and debt-free basis. The transaction is expected to close in April 2021.