One of the largest apparel companies in the world, Fanatics, has entered into an agreement to purchase the U.S. market of the Australian online gambling provider PointsBet for a whopping sum of $150 million. The jersey and sport-paraphilia U.S.-based company will complete the purchase from PointsBet Holding via its designated gambling division called Fanatics Betting and Gaming.
As per the agreement, Fanatics Betting and Gaming will gain control over the 14 U.S. states where PointsBet is live and this includes New Jersey, New York, Pennsylvania, Ohio, Virginia, West Virginia, Maryland, Louisiana, Michigan, Indiana, Illinois, Iowa, Kansas, and Colorado. PoinstBet, on the other hand, will retain its control over Canada and Australia, and even continue operating as an Australian-listed company on the stock exchange.
Moreover, PointsBet will also retain its sports betting, iGaming, and racing platform, in addition to getting a royalty-free, perpetual license to use the assets of Banach technology which the company purchased in March of 2021. Additionally, PointsBet will also retain its Canadian, Australian, and India-based teams, as well as its traders, quants, and technologists that are currently based in Australia.
Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet’s U.S. business. While there are still several steps in the process to complete the acquisition, both parties are confident in the outcome. Fanatics Betting and Gaming and PointsBet will provide further details of the proposed deal and timely updates in the coming weeks.
Fanatics Betting and Gaming & PointsBet
Furthermore, the current financial commitments that PointsBet has toward NBCUniversal will also be transferred to Fanatics Betting Gaming. NBCUniversal will also release PointsBet from any future obligations and waive its legal rights to exercise any previously issued equity options, thus transferring any future economical duties to the new owner Fanatics Betting and Gaming.
The definitive answer regarding the purchase of PointsBet by Fanatics will be finalized toward the end of June 2023, when the shareholders of PointsBet Holding will meet to discuss the final details of the acquisition. However, it is known that the board of directors at PoinstBet is unanimously pushing to convince shareholders to vote in favour of the acquisition. The current value of a single PointsBet share on the stock exchange is valued between AU$1.07 and AU$1.10.
