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PointsBet has agreed to sell its US operations to Fanatics for $150m, following its recent announcement that it had undertaken a strategic review.
The deal is still subject to regulatory and shareholder approvals. However, this isn’t expected to be a problem – with a shareholder meeting scheduled for June, which will likely see the deal ratified.
PointsBet will keep its Australian and Canadian businesses, with the company stating that it anticipates the regions will break even with EBITDA.
Following the shareholder meeting, PontsBet will have a funding cap of $21m for its US operations until the transaction to Fanatics is complete.
PointsBet Chairman, Brett Paton, said of the deal: “In view of the US market in which the company has significant operations, the Board has explored and considered a wide range of strategic alternatives over an extended period of time.
“Having considered all of the options potentially available to the company the board believes the Fanatics Betting and Gaming proposal optimises value for shareholders.”
Meanwhile, PointsBet Managing Director and Group CEO Sam Swanell added: “Despite the strategic success building a valuable asset in the US, the costs of operating in a state-by-state environment, together with the requirement to build significant scale to compete against well-capitalised operators, led us to explore a number of options.
“The sale of the US Business to Fanatics Betting and Gaming delivers the most attractive risk-adjusted value outcome for shareholders compared to the risks and benefits of other options, including the status quo.”
