BetMakers Technology Group Ltd (ASX: BET) shares are up by nearly 12% this morning after the company released a big market announcement. At the time of writing, the BetMakers share price has rocketed to 71.5 cents, just shy of its 52-week high of 76 cents. This comes on the back of a key development in a proposed acquisition for the company.
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Why is the BetMakers share price on the move?
BetMakers announced on 1 December 2020 that it was set to acquire Sportech PLC's (LON: SPO) racing and digital assets. Today, BetMakers announced the Sportech board has terminated talks with another third party, Standard General.
The board has also urged shareholders to vote in favour of the resolution to approve the disposal of the assets to BetMakers.
That announcement has seen the BetMakers share price jump 11.72% higher in early trade as investors react to the news.
The board's approval and recommendation has paved the way for the key acquisition of the assets.
Sportech's global tote business is being acquired by the Aussie betting technology group for total cash consideration of 30.9 million pounds sterling (A$55.1 million).
The acquired assets will include the North America-facing white label digital betting solutions business alongside other key assets.
In total, US$12.2 billion in stakes were processed for the year ended 31 December 2019 with clients in 37 countries.
How has the BetMakers share price performed this year?
The BetMakers share price has rocketed more than 400% higher in 2020 in what has been a bumper year for shareholders.
Shares in the Aussie wagering group are also currently yielding around 5% p.a. The group's market capitalisation has also swelled to $388.0 million prior to the start of trade today.
Other ASX wagering shares are also climbing higher this year with the Pointsbet Holdings Ltd (ASX: PBH) share price up 167% in 2020 to $12.19.
Foolish takeaway
The BetMakers share price has rocketed higher in early trade to near its 52-week high. Today's announcement by the Sportech board paves the way for the offshore acquisition towards the end of the year.
