Fanatics has moved to expand its sports betting footprint with the acquisition of PointsBet US, in a deal reportedly worth $150m.
As a result of the deal, Fanatics will acquire the Australian group’s US sports betting and igaming operations, Banach tech and a license to use the firm’s proprietary technology.
The cash purchase underlines the group ambitions to become a key player in the growing US sports betting market.
A joint statement read: “Fanatics and PointsBet are excited to enter into an agreement for Fanatics Betting and Gaming to acquire PointsBet’s US business.
“While there are still several steps in the process to complete the acquisition, both parties are confident in the outcome. Fanatics Betting and Gaming and PointsBet will provide further details of the proposed deal and timely updates in the coming weeks.”
It comes after the Australian firm has enjoyed significant growth in the US, despite failing to reach profitability and having a cash issue. US revenue growth stood at 103% in the 12 months ended Q3, with 115% igaming growth.
Fanatics is currently in beta testing in Tennessee and Ohio with one live retail sportsbook in the FedEx Field in DC, but now has much wider US ambitions with the goal to catch up with the big players such as FanDuel and DraftKings.
Furthermore, the terms of the agreement reveal that PointsBet will continue to meet its funding obligations for the US unit, capped at $21m until the closure of the deal, which includes fees as part of the NBCUniversal partnership. Speaking on an investor call, PointsBet chairman Brett Paton detailed: “The acquisition by Fanatics Betting and Gaming of our US Business will enable PointsBet to return significant capital to shareholders while retaining strong Australian and Canadian businesses supported by our leading proprietary technology in a capital-light setting.”