- Sportech has received shareholder approval for the divestment of its Racing and Digital assets to BetMakers for total consideration of £30.9 million
- Settlement of Betmakers’ A$50 million Placement to fund the Acquisition (in conjunction with existing cash) will occur on 31 December 2020, with allotment and normal trading of new shares issued under the Placement to occur on 4 January 2021
- The Acquisition of Sportech’s Racing and Digital assets enables Betmakers to accelerate its international growth plans and strategically positions the Company to capitalise on emerging opportunities in the U.S. market
The Board of BetMakers Technology Group Limited (ASX:BET) (“BetMakers” or “the Company”) is pleased to announce that the acquisition of the Racing and Digital assets of leading international online sports betting company, Sportech PLC (“Sportech”), for £30.9 million (“Acquisition”) has been approved by Sportech shareholders. This was the only condition precedent to completion of the Acquisition that was for Sportech’s benefit.
BetMakers will now make a non-refundable initial payment of £6.2 million, with the balance of £24.7 million payable upon completion of the Acquisition, which will occur following satisfaction of certain customary conditions that only BetMakers can waive (at its discretion), including transfer of licences. Further details regarding the terms of the Acquisition are set out the investor presentation lodged with the ASX on Tuesday, 1 December 2020.
Betmakers’ A$50 million placement (“Placement”) to fund the Acquisition (in conjunction with existing cash) comprising the issue of approximately 83.3 million new fully paid shares (“New Shares”) at an offer price of A$0.60 (“Placement Price”) will settle on 31 December 2020, with allotment and normal trading of New Shares to occur on 4 January 2021. Details of the previously announced A$10 million share purchase plan will be released in the upcoming days.
Details of the Acquisition:
The Acquisition of Sportech’s Racing and Digital assets in the United States, United Kingdom and Europe is intended to accelerate BetMakers’ international growth plans with a significantly expanded global customer base and strategic position to fully capitalise on emerging opportunities in the U.S. market, including Fixed Odds wagering.
BetMakers considers the Acquisition to be transformational for the Company’s
financial and growth prospects. The Acquisition includes the following key Sportech assets:
- Americas Tote Business: providing betting solutions, hardware and operational services to over 200 racetrack, casino and betting venues to more than 50 customers across the United States, Canada and Latin America.
- Americas Digital Business: providing white-label digital betting solutions to more than 25 customers in North America.
- UK and European Tote Business: providing betting technology, parimutuel and co-mingling services to more than 35 customers across the UK, Ireland, Europe and Asia.
- QuantumTM Tote Technology – a world-leading tote betting engine currently used internationally and including for events such as the Breeders Cup and Royal Ascot race meetings.