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The bidding war for the U.S.-facing business of the Australian online gambling firm PointsBet is over.
Fanatics Betting and Gaming submitted an improved proposal to purchase PointsBet’s U.S. business for cash consideration of $225 million, up from the $150 million previously announced on May 15, 2023.
PointsBet has accepted the offer. Shareholders will vote on the FBG deal at an extraordinary general meeting on Friday, June 30, 2023.
PointsBet received a non-binding proposal from DraftKings Inc. to acquire the company’s U.S. business for $195 million. The DraftKings offer was seen as a move to block the launch of a Fanatics online sportsbook.
DraftKings, based out of Massachusetts, didn’t put in a higher offer.
PointsBet has online gambling licenses in 15 states, giving Fanatics market access.
The Fanatics offer incorporates a “two-stage completion,” with $175 million to be received at the deal’s “initial completion” and $50 million to be paid later.
“The improved proposal delivers PointsBet shareholders a 50% or US$75 million increase to the acquisition price originally agreed with Fanatics Betting and Gaming,” PointsBet Chairman Brett Paton said in a statement. “Following the receipt of a non-binding indicative offer for our U.S. business from DraftKings on June 16, 2023, the PointsBet team entered negotiations with both parties.”
“The Board unanimously supports the improved proposal from Fanatics Betting and Gaming, which provides a superior price plus certainty. Fanatics Betting and Gaming conducted their diligence process and negotiations in a highly professional manner at all times. The offer to ‘front end’ the additional consideration is an element that we regarded as a welcome and significant benefit to our shareholders.”
“Subject to shareholder and regulatory approvals, our U.S. team will have a strong future as part of the Fanatics Betting and Gaming group. PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet.”
DraftKings didn’t comment on the development.
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