Sydney, October 24, 2022 AEST (ABN Newswire) – BetMakers Technology Group Limited (ASX: BET) (TPBTF:OTCMKTS) is pleased to announce that it has entered into a purchase deed (deed) to acquire ABettorEdge Pty Ltd ACN 155 963 401, under the name “Punting Form”. Punting Form uses proprietary intellectual property and artificial intelligence to create section times and benchmarks for horse racing that are used for time-based scoring systems. The Company believes that this acquisition will further strengthen BetMakers’ position as one of the world’s leading providers of B2B horse racing data and technology services.
Punting Form is used by professional betting syndicates, betting operators, content creators and form analysts worldwide and forms an integral part of the data requirements for professional horse racing participants. Section Times can be used in conjunction with technology from BetMakers to provide enhanced features such as more accurate pricing algorithms, speed maps, rider feedback and benchmarking for integrity.
BetMakers will integrate Punting Form services and data across all operating divisions, with an immediate focus on Managed Trading Services (part of the Global Betting Services division) enabling pricing improvements in its scoring engine. Additionally, Punting Form will expand current services to include section time rankings for North America and other global jurisdictions (including New Zealand, UK and Ireland) and additional racing (greyhound and harness racing).
The company views this asset as strategically important, adding world-class technology that BetMakers management believes will help improve margins and create new revenue streams across the business. Benefits should include:
– Global Betting Services: For our platform and our Managed Trading Services clients, this will result in improved back-end tools, more efficient pricing and improved relative trading margins
– Global Tote: An opportunity to leverage existing Punting Form relationships that allow racing syndicates to generate more cash in existing and new markets for our racetrack partners
– Global Racing Network: Improved pricing and increased confidence in foreign content will allow BetMakers to bundle the existing form, with Punting Form time factors, vision, pricing and trading for a complete product offering.
– American Fixed Odds: Increasing the quality of race timing will ensure that BetMakers proprietary scoring engine is fed with the cleanest and most accurate data, making it easier for betting operators to switch from catch-all products at fixed odds.
Punting Form will be part of the Global Betting Services division of BetMakers.
Financial overview of the acquisition of Puting Form
For the acquisition of Punting Form, on the date of completion, BetMakers will pay the sellers of Punting Form, namely JJ Ventures Limited (a company incorporated in Hong Kong under number 2824103) (JJ Ventures) and Hkelly Holdings Pty Ltd CAN 156,156,062 as trustee of the Kelly Family Trust (together, the sellers) an initial consideration of $3 million, paid in cash, with a potential earn-out of $17 million realizable over the next three years on achievement of operational, revenue and profitability objectives.
Earnout measures are set at approximately four times revenue and eight times earnings before interest and tax (“EBIT”) for Punting Form as a subsidiary of BetMakers. In addition, BetMakers will benefit from revenue and profit synergies in addition to the profit contribution from the standalone Punting Form business on which the earnout is based. For earn-out calculations, Punting Form subsidiary revenue and profit excludes all internal BetMakers synergies across its divisions and only external customer revenue and profit is included.
Regarding the acquisition of Punting Form, BetMakers CEO Todd Buckingham commented:
“Sectional Times is at the forefront of any rating system and required by any serious rating engine. The synergies within our business are exceptional, both with internal use and our external client base benefiting greatly from this acquisition. Punting Form’s team are highly experienced in offering B2B betting solutions and we are delighted to have them on board at BetMakers.”
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX: BET) (OTCMKTS: TPBTF) is an ASX-listed holding company and a global provider of online betting products and services in the wholesale and retail markets through its various wholly owned subsidiaries. The Company operates a retail betting business, providing consumers with betting, fantasy tournaments and content products and services.
Betmakers Technology Group Ltd