PointsBet acquires Dublin oddsmaker Banach Technology for $43m
Deal expected to improve operator’s in-play betting offering in US and provide tech hub in Europe
PointsBet has entered into a $43m binding share purchase agreement to acquire Dublin-based oddsmaker Banach Technology in preparation for an in-play betting boom in the US.
As part of the deal, 55% of the total price will be paid using cash, with shares in Australia-listed PointsBet making up the remaining 45%.
Banach specializes in in-play betting products across key sporting markets, including US leagues, and previously established the quants division at Paddy Power, now owned by Flutter Entertainment.
PointsBet anticipates in-play wagers will account for up to 75% of all sports betting activity across the US in three years’ time.
The operator also expects the deal to accelerate its technology roadmap, as Banach’s proprietary risk management algorithms and trading experience will allow the group to optimize its sports margin and lead to lower costs over time.
“In Banach, PointsBet has found a like-minded team of technologists and the acquisition is a preferable approach to developing our in-play capabilities organically, given it allows us to dramatically ramp up our speed to market while still allowing us to own market-leading technology and continue to control our destiny,” PointsBet group CEO Sam Swanell said of the acquisition.
Speaking to investors after the deal announcement, Swanell said PointsBet would gain access to valuable engineering talent in Europe and Ireland via Banach’s Dublin hub.
“Banach has built a team of 40 staff with deep experience in betting products in mature and sophisticated European sports wagering markets, with a key focus on in-play betting,” Swanell said.
“The acquisition provides Pointsbet with a European technology and operations hub which will enable us to attract talent from mature European and UK markets.”
The four Banach founders, who have 60 years’ combined experience in developing technology between them, will adopt senior PointsBet positions, with Mark Hughes, former head of quants at Paddy Power, to become PointsBet group COO.
Banach co-founder and ex-senior software engineer at Paddy Power Alex Zevenbergen will take on the role of VO of engineering, trading platform, while Hadrien Lepretre and Rob Reck have secured VP of quantitative analytics and special advisor roles respectively.
Banach’s Hughes said: “We could not be more excited about the burgeoning US opportunity and the role that the Banach team will play in accelerating and strengthening PointsBet’s pre-game, in-play and free-to-play offering in the US.”
Banach’s 40 employees will also join the PointsBet team.
In recent months Bally’s, Caesars, Wynn Resorts, DraftKings, and GAN have also acquired European betting technology platforms to improve their position in the US and take control of their technology roadmaps.