Fanatics Announces Deal to Acquire PointsBet US

Listen to this news articleLISTEN TO THIS ARTICLE:

Fanatics, the sports retail giant, has announced that its Betting and Gaming (FBG) arm has reached an agreement to acquire PointsBet Holdings’ US division for $150 million.

The deal remains subject to shareholder and regulatory approval, but it will see PointsBet keep its Canadian and Australian businesses and operations and remain listed on the Australian Stock Exchange. It will allow PointsBet to retain its proprietary sports betting, racing, and iGaming platforms, and it will have a royalty-free license allowing it to make use of Banach technology assets, which the company acquired in March 2021.

The deal also stipulates that PointsBet will maintain its teams in Australia, Canada, and India and that the company will provide its services to FBG before the final closing of the deal.

PointBet US’ commitments to NBCUniversal will be transferred to FBG, and NBCUniversal has released PointsBet from any guarantee obligations under its media service agreements.

The deal will be voted upon by PointsBet shareholders in June, and the company’s board has unanimously recommended that shareholders vote in favor of the deal. Assuming the deal goes ahead, PointsBet will distribute net sale proceeds to shareholders, and it is estimated to be in the region of AU$1.07 to AU$1.10 per share.

In view of the US market in which the company has significant operations, the board has explored and considered a wide range of strategic alternatives over an extended period of time. Having considered all of the options potentially available to the company, the board believes the Fanatics Betting and Gaming proposal optimizes value for shareholders. The acquisition by Fanatics Betting and Gaming of our US business will enable PointsBet to return significant capital to shareholders while retaining strong Australian and Canadian businesses supported by our leading proprietary technology in a capital-light setting.

Brett PatonPointsBet Chairman

Sam Swanell, the PointsBet managing director and group chief executive, said that the deal will ensure the best risk-adjusted outcome for shareholders when compared to other options the company has explored. He added, “Fanatics Betting and Gaming has recognized our strategy, technology, and team as a platform for their own expansion in the online sports betting and igaming market. Given Fanatics' significant presence in the US sports market, we consider them to be a natural acquirer of our US business.”

The deal arrives as Fanatics works to increase its sports betting activities in the US. It launched the Fanatics Betting and Gaming division in January, and since then, it has joined the International Betting Integrity Association (IBIA) and announced its support for the Responsible Gambling Collaborative (RGC).

More Business News


Leave a Comment

user avatar
My Name United States of America
Your Comment

User Comments

Comments for Fanatics Announces Deal to Acquire PointsBet US