Betr Increases Offer to Acquire PointsBet to $360M
Sports betting firm Betr Entertainment has presented an updated acquisition proposal for rival PointsBet, with the aim of finalizing a complete takeover after becoming the company’s largest shareholder.
LISTEN TO THIS ARTICLE:Betr Counters MIXI’s Bid with Enhanced Offer
Following its recent purchase of a 19.9% stake in PointsBet, Betr has quickly positioned itself as a major player in the battle for control of the betting company. The move comes after a competing bid from MIXI, which is also looking to buy PointsBet.
In a recent filing with the Australian Stock Exchange, Betr outlined a plan to acquire the rest of PointsBet through a Scheme of Arrangement. The deal, valued at $360 million, comprises $260 million in cash and an additional $100 million in Betr shares.
According to Betr, its proposal offers “significantly greater value” to PointsBet investors compared to MIXI’s bid. The company claims the combination would unlock synergies exceeding $40 million annually, which would potentially deliver shareholders a return of $1.33 per share.
To support both its initial stake and the full acquisition effort, Betr is now in the process of raising $130 million in capital.
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Betr chairman Matthew Tripp described the offer as a “clearly superior proposal” compared to MIXI’s. He emphasized the proposal’s ability to generate substantial value for shareholders and noted that any previous issues had already been addressed.
Our proposal is supported by materially enhanced funding security, and as the largest shareholder in PointsBet, we now intend to vote our holding against the current MIXI proposal, reducing its likelihood of success. I am confident PointsBet shareholders will recognize the benefits of our proposal as we work toward again becoming leaders in the Australian wagering market.
Betr CEO Andrew Menz echoed Tripp’s confidence in the acquisition and said that the deal could enable the company to claim a 10-15% share of the Australian wagering market and emerge as the country’s fourth-largest operator.
Menz also referenced the successful integration of BlueBet and the acquisition of TopSport as examples of Betr’s ability to capitalize on such deals. He concluded that the efficiencies gained from acquiring PointsBet would help boost investment in both the brand and its offerings, which would lead to larger profits.
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