Shares in BetMakers Technology Group Ltd (ASX: BET) have jumped today after the company emerged from its trading halt.
The BetMakers share price resumed trading at the market open and is currently racing up 11% at $1.20 after the completed acquisition was announced. (And it's not Tabcorp Holdings Ltd (ASX: TAH) assets).
Image source: Getty Images
What did BetMakers acquire?
In today's release, BetMakers advised the completion of its acquisition of Sportech's racing, tote and digital businesses.
BetMakers said it had received the last of the approvals and clearances required to complete the acquisition. The company expects to formally receive a number of regulatory and other approvals post-acquisition, as well as begin to engage regulators across multiple jurisdictions.
The company first revealed its Sportech acquisition on 1 December 2020, describing it as "transformational for the company's financial and growth prospects".
The $56.2 million acquisition includes three of Sportech's betting solutions businesses across the Americas, the United Kingdom and Europe, and its world-leading tote betting engine.
Betmakers said the acquisition would materially expand its global customer base, technology and geographic reach. In particular, a platform to target growth in the key United States market, including pari-mutuel betting and fixed odds offerings.
What did management say?
BetMakers managing director Todd Buckingham said:
The successful completion now allows us to continue to execute the next stages of our global strategy.
It is not often that such compatible international wagering assets become available in our industry. Accordingly, BetMakers views this acquisition as a pivotal step in seeing the business become the centre of global wagering. We intend to continue to expand in all regions where we see complementary synergies for our business that fits this vision.
BetMakers share price snapshot
Today's announcement offers relief for BetMakers shareholders, after a nasty 30% crash in the last three weeks.
Despite making headway today, the BetMakers share price still needs another 25% to retest its 27 May record close of $1.60.
With today's gains, the company's shares are up 72.8% year-to-date.
