BetMakers announces RACELAB acquisition as Punting Form deal nears completion
ASX-listed supplier reveals A$1.5m deal for racing wagering tech supplier as details over termination of Betr partnership come to light ahead of operator’s merger with BlueBet
BetMakers has acquired racing wagering product and technology supplier RACELAB for a total consideration of A$1.5m (£780,000).
The structure of the deal will see BetMakers part with A$1.5m in cash, with a clawback of A$500,000 dependent on key customer novation in the next 30 days.
The transaction, which BetMakers labelled as “highly strategic”, will provide the supplier with race form, preview and stats tech, as well as proprietary fixed-odds pricing technology and associated algorithms.
The deal will also see BetMakers take ownership of the ongoing partnership between RACELAB and Sports Information Services to develop new products and services for its global customer base.
The supplier said the deal would allow it to expand further into the harness and greyhound racing sectors, which in turn would allow the firm to acquire new customers.
On acquiring RACELAB, BetMakers CEO Jake Henson said: “We are pleased to secure this unique set of assets that hold tremendous potential for BetMakers.
“We have acquired market leading technology that further broadens the capabilities of BetMakers’ racing ecosystem for both wagering operators and rights holders alike across the globe.
“In addition, we are uniquely placed to integrate the RACELAB operations into our existing global infrastructure, driving new revenues via our existing sales channels and continuing to develop upon the strategic vision of both ProForm and Odds Engine technologies.”
ProForm informatics include race-day controls, form, pricing, trading, Tote and streaming, and will be integrated into BetMakers’ suite of products. OddsEngine will boost the supplier’s pricing and trading capabilities.
Henson added: “We are confident in our ability to deliver substantial value from this acquisition and to contribute towards both revenue and earnings growth in FY 2025 and beyond.”
Alongside the acquisition of RACELAB, BetMakers announced it will pay the remaining special deferred amount in the Punting Form deal, which was penned in October 2022.
BetMakers had entered into a share purchase deed to acquire Punting Form, with the board now electing to pay the remaining A$2.5m in the form of A$1m in cash and $1.5m in Punting Form shares.
Half of the shares will be escrowed for 12 months from the date they are issued and the other half to be escrowed for two years from the issue date.
A total of 15,789,475 Punting Form shares were issued on 10 April at A$0.095 per share, which is the 15-day volume-weighted average price prior to the date of issue.
The shares were issued under the company’s 15% placement capacity.
Also, as part of the long-term incentive plan as part of the deal, BetMakers issued 21,895 vested service rights to non-executive director Rebekah Giles, 96,604 vested service rights to non-executive director Anna Massion and 666,668 to several key employees.
On the back of the two announcements, BetMakers’ share price on the Australian Securities Exchange fell by 10% to $0.099.
Finally, BetMakers has revealed key changes to its partnership with Betr following confirmation the startup is to merge with Australian rival BlueBet.
BetMakers has confirmed amendments to its platform and services deal that was penned with Betr in April 2022, with Betr set to transfer to BlueBet’s proprietary tech as part of the transaction.
Betr will continues to use BetMakers’ product suite on a “reduced service arrangement” until the customer migration completes, with BetMakers claiming this will result in “significant cost savings and efficiencies”.
The pair’s agreement is due to terminate following the conclusion of the migration, which is scheduled to complete on or around 31 August 2024.
Should the migration not complete before 1 October, Betr will pay BetMakers a reduced fee of A$500,000 per month until the migration fully completes.
Following the timetable of 31 August, Betr has agreed to pay BetMakers A$2.25m by 14 June and an amount between A$1.5m and A$2m by 13 September.
Henson said: “BetMakers is pleased with the agreed outcome between the parties. We are satisfied with the terms to recover outstanding amounts owed to BetMakers by Betr. In addition, we are content with the agreement on the ongoing terms that are a result of Betr entering into a new transaction.
“We wish the Betr team all the best in its new venture, should it proceed, and will continue to be supportive wherever we can along that path,” he concluded.