I ‘bet’ you weren’t expecting another two acquisitions…
The post BetMakers (ASX:BET) builds out tech with more acquisitions appeared first on The Motley Fool Australia. –
BetMakers Technology Group Ltd (ASX: BET) has certainly been busy. The provider of wagering data and analytic products has announced another two acquisitions this morning.
Today’s newly announced acquisitions come only 5 days after the completion of the company’s Sportech purchase.
What did BetMakers announce?
BetMakers has announced the acquisition of two companies – Form Cruncher and Swopstakes. As part of the acquisition, BetMakers will take ownership of the technology platform assets, databases, and intellectual property of both entities.
In the release, ASX-listed BetMakers describes Form Cruncher as a company that, “processes racing event data such as odds, price fluctuations, sectional times, and results to create advanced form information and dynamic content that can be adapted and customised globally.”
The output from this technology is a range of features including runner ratings, speed ratings, and maps.
Similarly, Swopstakes is the second company part of today’s announced acquisitions. Swopstakes holds a proprietary betting product that runs sweepstakes on racing and sports events including AFL, NRL, NBA, and NFL.
Commenting on the announcement, BetMakers CEO Mr Todd Buckingham said:
BetMakers currently supplies multiple sources of informatics globally and the acquisition of Form Cruncher will allow us to bring this in-house and create a normalised offering across all of our global jurisdictions in which we operate.
Mr Buckingham also noted the meaningfulness of Swopstakes;
We believe there is an opportunity to adapt the product for our clients and achieve scale through integration, promotion and distribution through BetMakers’ extensive global network
Let’s talk money
Both acquisitions are to be funded through a mixture of the company’s current cash reserves and the issue of shares.
Firstly, Form Cruncher (FC) will receive an initial upfront cash payment of $1 million. In addition to that, nominees of FC will be issued 443,262 ordinary shares in BetMakers at $1.128 apiece.
A performance payment worth a maximum of $1 million will also be available dependent on performance milestones over the 2023 financial year.
Meanwhile, the Swopstakes acquisition will be funded via an upfront cash payment of $634,750. An additional performance payment up to $15 million will also be paid depending on the profit generated by Swopstakes post-acquisition.
BetMakers share price making an ASX comeback
In late May BetMakers threw its hand up in a bold acquisition bid for Tabcorp Holdings Limited (ASX: TAH) Wagering and Media business. The BetMakers share price swiftly tumbled around 35% following that announcement.
However, with no further developments on the Tabcorp front, the company is pushing forward elsewhere. As a result, the company’s share price has rallied 18% in the past two weeks.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.