PointsBet looks to US in-play growth following A$94m bumper investment from SIG Sports
Australia-headquartered operator gains new largest shareholder and data technology partner amid development of US in-play offering
PointsBet has confirmed the strategic investment of A$94.16m (£53.7m) in the form of a share purchase from Rotterdam-headquartered investment firm SIG Sports Investments Corporation (SIG Sports).
Under the terms of the purchase, SIG Sports will become PointsBet’s largest shareholder, with 38,750,000 shares purchased by the firm at A$2.43 (£1.38) per share, representing a premium of 15%.
SIG Sports, which is a subsidiary of Pennsylvania-headquartered Susquehanna International Group, will own a 12.8% share in the Australia-headquartered sportsbook and igaming operator following completion.
PointsBet has confirmed that no changes will be made to its board of directors following the investment by SIG Sports. The shares will be subject to a 24-month voluntary lock up period, by which SIG Sports has committed to not assigning, transferring or disposing of those shares.
Speaking about the investment influx from SIG Sports, PointsBet chairman Brett Paton said: “We are delighted to pair up with a visionary investor which has committed ongoing support and is eminently qualified in analytical trading in financial markets, and now in sports.
“The cultural alignment between both organizations is strong, and this investment will assist with expanding and growing our North American operations as we seek to lead in in-play betting and enhancing the overall customer experience,” Paton added.
In addition to the share purchase, PointsBet Europe Holdings Limited has signed an agreement with SIG member firm Nellie Analytics, which will see the firm provide extensive sports analytics and modeling to PointsBet.
Nellie will provide these services to PointsBet on a cost-free basis for an initial period of nine months, with a provision to make a longer-term agreement at the conclusion of this time.
The period of the agreement is understood to have been set on a rolling three-year basis.
“Building upon Nellie Analytics’ capabilities, the exploratory services and further services will complement and enhance the operational capabilities of PointsBet and accelerate the company’s technology roadmap as it relates to highly sophisticated risk management and trading algorithms, with a focus on in-play in the North American market,” PointsBet said in a statement.
SIG’s head of strategic planning David Pollard echoed these statements, elaborating on the firm’s appetite to expand PointsBet’s US arsenal through in-play.
“Since its inception, Nellie Analytics has sought to leverage SIG’s experience in quantitative modeling in financial markets and apply those lessons to creating a world-class sports analytics business particularly focused on in-play,” Pollard said.
“We are thrilled to explore the possibility of applying that hard-earned knowledge to a like-minded partner’s platform.
“With the North American sports betting market still being in the very early innings of its development, we believe that PointsBet, with Nellie’s potential assistance, is well-positioned to capitalize on the market’s inevitable growth,” Pollard added.
PointsBet’s shares grew by 18% in trading on the Australian Securities Exchange to a price of A$2.55.