The bidding struggle for the U.S.-facing enterprise of the Australian on-line playing agency PointsBet is over.
Fanatics Betting and Gaming submitted an improved proposal to buy PointsBet’s U.S. enterprise for money consideration of $225 million, up from the $150 million beforehand introduced on May 15, 2023.
PointsBet has accepted the supply. Shareholders will vote on the FBG deal at a unprecedented normal assembly on Friday, June 30, 2023.
PointsBet obtained a non-binding proposal from DraftKings Inc. to amass the corporate’s U.S. enterprise for $195 million. The DraftKings supply was seen as a transfer to dam the launch of a Fanatics on-line sportsbook.
DraftKings, based mostly out of Massachusetts, didn’t put in the next supply.
PointsBet has on-line playing licenses in 15 states, giving Fanatics market entry.
The Fanatics supply incorporates a “two-stage completion,” with $175 million to be obtained on the deal’s “initial completion” and $50 million to be paid later.
“The improved proposal delivers PointsBet shareholders a 50% or US$75 million increase to the acquisition price originally agreed with Fanatics Betting and Gaming,” PointsBet Chairman Brett Paton mentioned in a press release. “Following the receipt of a non-binding indicative offer for our U.S. business from DraftKings on June 16, 2023, the PointsBet team entered negotiations with both parties.”
“The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, which provides a superior price plus certainty. Fanatics Betting and Gaming conducted their diligence process and negotiations in a highly professional manner at all times. The offer to ‘front end’ the additional consideration is an element that we regarded as a welcome and significant benefit to our shareholders.”
“Subject to shareholder and regulatory approvals, our U.S. team will have a strong future as part of the Fanatics Betting and Gaming group. PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet.”
DraftKings didn’t touch upon the event.
