ASX-listed sports betting operator PointsBet has announced that it has entered into a binding agreement (SPA) to acquire Banach Technology through its Irish subsidiary Lockspell.
Dublin-based Banach is a specialist developer of sports betting risk management solutions, trading software and customised wagering functionalities – cashout, acca builders, build-a-bet components.
The acquisition sees PointsBet bolster its technical and trading capacities, seeking to accelerate growth within regulated US market states.
Securing a deal valued at $45 million, Pointsbet has agreed to acquire 55% of Banach’s shareholding in cash, with remaining company shares set to be paid through a joint share scheme.
“We are delighted with the acquisition of Banach and that its well credentialed team have agreed to join PointsBet,” remarked Sam Swanell, Group CEO and Managing Director of 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.”
In-play wagering is expected to account for 75% of all sports betting activity in the US within the next three years, and so the acquisition of Banach’s in-play technology could significantly enhance PointsBet’s stateside operations.
Although founded in Australia, PointsBet is now headquartered in Denver, Colorado, and is active in six US states, in addition to maintaining market access agreements in a further six.
It is hoped that the takeover of Banach will allow PointsBet ‘to promise achieved margin and offer superior value to its customers’ in the American sports betting sector.
“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,” Swanell continued.
“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”.
As a result of the takeover, Banach will be provided with US$4.0 million in funding – which will be retained by PointsBet upon completion of the transaction – to better assist the company in converting its existing equity options.
“I am extremely proud of the business and team we have built over the last few years,” said Mark Hughes, CEO of Banach. “We could not be more excited about the burgeoning US opportunity and the role that the Banach team will play in accelerating and strengthening PointsBet’s pre-game, in-play and free-to-play offering in the United States. It is great to be part of such a forward-thinking global organisation.”
Hughes will serve as Group Chief Operating Officer at PointsBet, where he will be joined by additional Banach personnel Alex Zevenbergen, as Vice President of Engineering, Trading Platform; Hadrien Lepretre, as Vice President of Quantitative Analytics; and Rob Reck as Product and Technology Adviser.