The Pointsbet Holdings Ltd (ASX: PBH) share price is on watch after an acquisition update from the betting technology group.
Why is the PointsBet share price in focus?
PointsBet provided an update on its US$43 million (~A$56 million) acquisition of Banach Technology. Banach is a business to business (B2B) software company that creates sports betting platforms and algorithms, with a large focus on in-play wagering.
The Aussie wagering group previously announced the takeover on 16 March 2021 with the PointsBet share price climbing higher on the news. PointsBet acquired Banach by paying 55% cash, issuing 1.75 million shares. In addition, PointsBet paid US$4 million to assist with the integration.
Pointsbet has now completed the acquisition per today's release and finalised payment. That represents an important step forward for PointsBet as it continues its growth trajectory in 2021. The company also said the acquisition "will position PointsBet as a leader of in-play sports wagering in the United States".
It's a potentially lucrative market that PointsBet is pushing to be an early market leader in. According to today's update, in-play wagering is expected to represent ~75% of all USA sports wagering within the next 3 years.
The PointsBet share price fell 0.9% lower on Tuesday and will be worth watching again today following the update.
PointsBet CEO and managing director Sam Swanell said:
We are delighted to welcome Banach into the PointsBet family and look forward to working together to deliver our full potential for the benefit of PointsBet shareholders, and all our stakeholders.
PointsBet has today issued 1,752,875 shares to complete the Banach acquisition, making the PointsBet share price one to watch.
How has PointsBet been performing?
The PointsBet share price fell 0.9% lower yesterday and closed at $12.96 per share. However, shares in the Aussie wagering group have still rocketed 301.2% higher in the last 12 months.
PointsBet now has a market capitalisation of nearly $2.4 billion prior to today's session.
