Acquisition of Punting Form
Sydney, Oct 24, 2022 AEST (ABN Newswire) - BetMakers Technology Group Limited (ASX:BET) (TPBTF:OTCMKTS) is pleased to announce that it has entered into a share purchase deed (Deed) to acquire ABettorEdge Pty Ltd ACN 155 963 401, trading as "Punting Form". Punting Form uses proprietary IP and artificial intelligence to create sectional times and benchmarks for horse racing which are used for time-based ratings systems. The Company believes that this acquisition will further strengthen BetMakers' position as one of the leading global providers of B2B data and technology services for horse racing.
Punting Form is used by professional wagering syndicates, wagering operators, content creators and form analysts globally and forms an integral part of data requirements for professional horse racing participants. The sectional times can be used in conjunction with BetMakers' technology to deliver enhanced features such as more accurate pricing algorithms, speed maps, runner comments and integrity benchmarking.
BetMakers will integrate the Punting Form services and data across all operating divisions, with an immediate focus on Managed Trading Services (part of the Global Betting Services division) allowing pricing improvements across its ratings engine. Additionally, Punting Form will expand the current services to include sectional time ratings for North American and other global jurisdictions(including New Zealand, UK and Ireland) and additional racing formats (greyhounds and harness racing).
The Company views this asset as strategically important, adding world-class technology that BetMakers' management believe will help drive margin improvement and create new revenue streams across the business. Benefits are expected to include:
- Global Betting Services: For our platform and Managed Trading Services customers it will mean improved back-end tools, more efficient pricing and improved relative trading margins
- Global Tote: An opportunity to leverage the existing Punting Form relationships powering racing syndicates to drive more liquidity in existing and new markets for our racetrack partners
- Global Racing Network: Improved pricing and increased confidence in overseas content will enable BetMakers to package up existing form, with the Punting Form time factors, vision, pricing and trading for a complete product offering.
- US Fixed Odds: The increase in race timing quality will ensure BetMakers' proprietary ratings engine is powered with the cleanest and most accurate data, facilitating wagering operators shift from tote products to fixed odds
Punting Form will become part of BetMakers' Global Betting Services division.
Financial Overview of Punting Form Acquisition
For the Punting Form acquisition, on the completion date, BetMakers will pay to the vendors of Punting Form, being JJ Ventures Limited (a company incorporated in Hong Kong with company number 2824103) (JJ Ventures) and Hkelly Holdings Pty Ltd CAN 156 156 062 as trustee for the Kelly Family Trust (together, Vendors) initial consideration of $3 million, paid in cash, with potential for a further $17 million earn-out achievable over the next three years on the delivery of operational, revenue and profitability targets.
The earn-out metrics are set at approximately four times revenue and eight times Earnings Before Interest and Tax ("EBIT") for Punting Form as a BetMakers subsidiary. In addition, BetMakers will benefit from revenue and profit synergies over and above the profit contribution from the standalone Punting Form business on which the earn out is based. For earn out calculations, revenues and profits for the Punting Form subsidiary exclude any synergies from BetMakers internal us across its divisions and only revenues and profits from external customers are included.
Regarding the Punting Form acquisition BetMakers CEO Todd Buckingham commented:
"Sectional Times are at the forefront of any ratings system and required by any serious ratings engine. The synergies across our business are exceptional with both internal use and our external client base benefiting greatly from this acquisition. The team at Punting Form are very experienced in delivering B2B wagering solutions and we excited to have them onboard at BetMakers."
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX:BET) (OTCMKTS:TPBTF) is an ASX-listed holding company and a global provider of online wagering products and services to both wholesale and retail markets through its various wholly owned subsidiaries. The Company operates a retail wagering business, offering consumers wagering, fantasy tournament and content products and services.
Betmakers Technology Group Ltd