Betr Puts Forward Proposal to Acquire PointsBet

Sports betting company Betr Entertainment has unveiled a revised takeover proposal for competitor PointsBet. The former company, which just became PointsBet’s largest shareholder, is now seeking to complete its buyout.

Betr Challenges MIXI’s Proposal

Earlier this week, Betr acquired a 19.9% stake in PointsBet, immediately positioning itself as one of the latter company’s biggest shareholders. However, Betr is not the only party interested in PointsBet since rival MIXI has likewise proposed to acquire PointsBet.

In an Australian Stock Exchange filing, Betr proposed to acquire the remaining PointsBet shares via a Scheme of Arrangement. The proposal values PointsBet at $360 million, which would consist of $260 million in cash, as well as $100 million in betr scrip.

According to the announcement, the proposal delivers “significantly greater value” to PointsBet shareholders than the current MIXI proposal. Per this deal, synergies could amount to over $40 million a year, delivering a potential value outcome of $1.33 per share for PointsBet shareholders.

In the wake of the announcement, PointsBet’s shares surged, reaching AUD 1.08 as of the time of this writing.

Betr, on the other hand, is now looking to raise $130 million to fund its recent stake in PointsBet, as well as a part of the full acquisition.

The Synergies Between the Companies Will Result in Greater Profitability

Betr officials commented on the proposal, with the company’s chair, Matthew Tripp, calling the offer a “clearly superior proposal” to the one put forward by MIXI. He asserted that the deal would raise significant value for PointsBet’s shareholders and added that all concerns have already been addressed.

Our proposal is supported by materially enhanced funding security, and as the largest shareholder in PointsBet, we now intend to vote out holding against the current MIXI proposal, reducing its likelihood of success. I am confident PointsBet shareholders will recognize the benefits of our proposal as we work toward again becoming leaders in the Australian wagering market.

Matthew Tripp, chair, Betr

Betr’s chief executive officer, Andrew Menz, likewise commented on the deal and what it means to Betr. He noted that the company is looking to become the “clear number four wagering player” in Australia, occupying a market share of 10-15%. He believes that the synergies with PointsBet will make this goal possible.

We are well-positioned to realize these benefits rapidly, with the bulk of the synergies unlocked through a complex migration to a single brand and app.

Andrew Menz, CEO, Betr

Menz pointed to the successful merger with BlueBet as an example of his team’s ability to capture and leverage synergies. He also mentioned the recent TopSport acquisition.

Menz concluded that the operating efficiencies generated by the acquisition of PointsBet would allow its team to invest more in its brand and product, resulting in enhanced profitability.