Australian Company BetMakers Set To Acquire Global Tote
Posted on December 9, 2020 | 10:40 am
BetMakers Technology Group, a race betting operator and wagering technology provider from Australia, has reached an agreement with Sportech to buy their racing and digital assets in the United States, the United Kingdom, Europe and Asia.
The deal is all about the Global Tote pari-mutuel technology division of Sportech, and BetMakers agreed to pay just over 56 million dollars for the business. The agreement is subject to approval by Sportech’s shareholders, who are expected to hold a meeting by the end of the year.
This acquisition marks a clear shift in gears for BetMakers as the company tries to boost its growth on an international scale. This purchase is expected to generate substantial revenues and earnings before interest, taxes, depreciation, and amortisation for the company based in New South Wales.
Supercharged Entry into the United States
Speaking about the acquisition, Todd Buckingham, Managing Director of BetMakers Technology Group, said: “This acquisition will supercharge our entry into the United States 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 of Sportech assets and the momentum we are seeing in the BetMakers’ business during this current financial year places the Company in an extremely strong growth position.”
BetMakers will have to pay 20 percent of the agreed price once the Sportech shareholders approve the deal, while the rest of the agreed price will be paid when regulatory approvals are secured, most likely in the first half of 2021.
Global Tote is a solid global brand, with clients in 37 different markets. They handled a substantial 12.2 billion U.S. dollars in racing wagers in 2019, but were unable to record a profit during that time frame.
In fact, Global Tote recorded a pre-tax loss of 800,000 pounds in 2019. The first half of 2020 wasn’t any better, with total revenues of 12 million pounds and a pre-tax loss of 1.2 million pounds.
BetMakers will fund this acquisition through an equity raising involving 83.3 million new shares, which represent about 13.9% of the company’s currently issued shares.