Fanatics has agreed a deal to buy PointsBet’s US business in an acquisition that will see the online sportswear retail company pay US$150 million (AU$222 million / €137.8 million).
As part of the deal PointsBet will:
- Retain its Australian Trading Business and Canadian Trading Business
- Retain ownership of PointsBet’s proprietary sports wagering, racing, and iGaming platform
- Have a perpetual, royalty-free license to exploit the Company’s Banach technology assets, with optionality to utilise these assets into geographic regions outside the US
Fanatics acquisition of PointsBet’s US business will also see the brand conclude its partnership deal with NBCUniversal. The final payment in the media agreement is included as part of PointsBet’s capped funding requirement in the deal. NBCUniversal has opted to release PointsBet Holdings Limited from its obligations under its media services agreement.
PointsBet shareholders are expected to vote on the proposed deal at a shareholder meeting which could take place in June of 2023.
Speaking of the deal PointsBet Chairman Brett Paton said:
“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 optimises 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.”
PointsBet Managing Director and Group CEO Sam Swanell said:
“Given Fanatics significant presence in the US sports market, we consider them to be a natural acquirer of our US Business. I would like to thank Fanatics Betting and Gaming’s CEO Matt King and his team for working with the PointsBet team on the significant amount of constructive diligence that has been done leading to this proposed transaction.
Importantly the proposed transaction removes the risks and capital requirements associated with executing the Company’s United States strategy.”
The news of Fanatics acquisition comes less than a month after reports emerged that PointsBet was offloading its US business.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.