Insights

BetMakers (ASX:BET) share price on watch after announcing major acquisition

The BetMakers Technology Group Ltd (ASX:BET) share price will be on watch this week after announcing a major acquisition…
The post BetMakers (ASX:BET) share price on watch after announcing major acquisition appeared first on Motley Fool Australia. –

excitement surrounding asx share price rise represented by man holding slip of paper and making happy, fist up gesture

The BetMakers Technology Group Ltd (ASX: BET) share price will be one to watch later this week when it returns from its trading halt.

Why is the BetMakers share price in a trading halt?

This morning the betting technology company requested a trading halt whilst it launched an equity raising to fund a major acquisition.

According to the release, the company has entered into binding agreements to acquire global assets of leading international online sports betting company Sportech PLC for A$56.2 million on a cash-free, debt-free basis.

Management advised that the proposed acquisition of Sportech’s Racing and Digital assets in the United States, United Kingdom, and Europe is intended to accelerate BetMakers’ international growth plans.

It will significantly expand its global customer base and strategic position to fully capitalise on emerging opportunities in the U.S. market. This includes fixed odds wagering.

The acquisition is expected to deliver substantial revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) for BetMakers’ business.

Management advised that on a pro-forma basis for FY 2020, the Tote and Digital Business combined with BetMakers’ existing operations would have delivered A$56.1 million revenue and A$7.7 million EBITDA.

This compares to BetMakers’ stand-alone revenue of A$9.2 million and EBITDA of A$0.8 million.

In addition to this, the company expects to derive strong growth from the Tote and Digital Business, including from synergies and cross-selling opportunities.

“Supercharge” US entry.

BetMakers’ Managing Director, Todd Buckingham, commented: “This Acquisition will supercharge our entry into the U.S. and position the Company for substantial growth on the back of the emerging wagering opportunities in U.S. racing, including Fixed Odds, where we believe we are well placed.”

“The Acquisition would give us a meaningful presence in the U.S., including in 36 of the States and across more than 200 venues, 25 digital outlets and 9,000 betting terminals. It will also greatly expand our global customer base across the UK, Europe and Asia and provides us with an opportunity to expand our product offering at scale in these and other regions,” he added.

Equity raising.

To fund the acquisition, BetMakers is aiming to raise a total of $60 million.  This will be via a fully underwritten $50 million placement and a $10 million share purchase plan.

These funds will be raised at 60 cents per share, which represents a 9.1% discount to its last close price.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post BetMakers (ASX:BET) share price on watch after announcing major acquisition appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!