PointsBet board backs A$353m acquisition from MIXI despite BlueBet’s offer
Transaction would see Japanese firm snap up Australia-based operator, although betr’s parent company claims its bid has major PointsBet shareholders on side
PointsBet has entered into a scheme implementation deal with Japanese company MIXI which will see the Ontario- and Australia-facing operator acquired for A$353m (£176.5m).
The deal involves PointsBet shareholders receiving a cash consideration of A$1.06 per share, representing a 27.7% premium on PointsBet’s closing price on 25 February.
The valuation also places a 23.9% premium on the company’s one-month volume weight average share price, and an implied EV/EBITDA multiple of 25.2x to 32.1x – based on 2025 performance.
With the offer being made public today, PointsBet’s shares soared by a third to A$1.10.
The PointsBet board has unanimously recommended the offer to shareholders, with an “independent expert” due to evaluate the offer to determine whether it is in shareholders’ “best interests”.
Yet despite the backing from the PointsBet board, fellow Australian operator BlueBet has also tabled a bid from the company.
In a letter penned by chair Matt Tripp and CEO Andrew Menz, the pair laid out a deal worth between A$340m and A$360m, with identified synergies at least A$40m.
The enterprise value consists of a cash pool of between A$240m and A$260m, along with scrip consideration of between A$100m and A$120m. A scrip bid in Australia is a takeover where shares are offered partly or wholly instead of cash.
BlueBet, the company behind challenger brand betr, snapped up the small Australian operator TopSport this month for A$15m.
Tripp and Menz wrote: “Our proposal offers compelling strategic and financial benefits for PointsBet shareholders. The transaction offers betr immediate additional scale, access to important technology assets and key marketing contracts, all of which will accelerate our growth ambitions.”
The duo added that following “unsolicited interactions with common PointsBet and BlueBet shareholders”, that they expect more than 20% of PointsBet shareholders to back their deal.
As per the Australian Financial Review, major PointsBet shareholders Wilson Asset Management and Pendal have both backed BlueBet’s offer over MIXI.
While the BlueBet offer was made public, the scheme implementation deal with MIXI is the leading bid, with it expected to commence in mid-June, subject to regulatory approvals.
PointsBet shareholders will be able to vote on the MIXI offer in May, while court approval will also be required for the deal to progress.
Last June, Stake founders Ed Craven and Bijan Tehrani increased their minority position in PointsBet to just north of 5%.
MIXI is already live in Australia with its betM brand, which it operates via its MIXI Australia subsidiary. The transaction would see MIXI Australia acquire 100% of PointsBet shares.
BetM is licensed in the Northern Territory, with the brand citing social connectivity as a core USP.
MIXI is a multi-faceted business, working across mobile games, communications, sports betting and professional sports with more than 1,600 employees across the world.
PointsBet said that annual net sales for the company amounted to JPY147bn (£777.5m) in its latest full-year report.
Should either party want to back away from the deal, PointsBet would have to pay MIXI a A$3.5m break fee, while the Japanese company would fork out A$2.5m in “certain circumstances”.
Brett Paton, PointsBet chair, said the MIXI offer represented a “compelling opportunity” for shareholders.
He said: “When considering any proposal, the PointsBet Board has consistently stated it is committed to maximising value for PointsBet shareholders.
“The PointsBet board believes this transaction represents a compelling opportunity for PointsBet shareholders to realise certain cash value, at a significant premium to recent trading prices and at an implied multiple which compares very favourably with historical sector trading multiples and multiples associated with other transactions in the sector.”
Alongside confirmation of the bid, PointsBet also released its H1 result for fiscal year 2025, with revenue up 6% to A$124.4m.
In the six months to 31 December, gross profit spiked 11% to A$65m, while normalised EBITDA losses shrank from A$13.3m to A$3.3m.
Total cash active clients came in at an all-time high of 292,600.
In Australia, revenue ticked up 4% to A$106.2m on the back of a 22% slide in turnover to A$1.1bn, while gross profit rose from A$50.1m to A$55.8m.
Over in Canada, revenue was up 14% to A$18.2m, with gains in both sports betting and igaming.
PointsBet sold its US-facing business to Fanatics Betting and Gaming for $225m, with the deal completing last May.