PointsBet acquires Banach Technology for $43 million
Banach Technology has been bought out by PointsBet, the Australia-based online bookmaker. The former is commonly known as the Robinhood of sports betting, and PointsBet now obtained it in a $43 million buyout on Monday.
Banach is a B2B software provider developing sports betting platforms and algorithms. PointsBet, who has headquarters in Denver, will be paying 55% of the amount in cash, $4 million to convert the two companies and will be supplying 1.75 million shares.
Johnny Aitken, CEO of PointsBet, stated:
“Multiple benefits will be unlocked by this transaction,” including PointsBets’ enhancing in-play offerings. The trend in this industry, especially in the U.S., will be all around in-play betting. Roughly 50 percent of bets are currently placed in-game. Within three years, our expectation is roughly 75 percent of bets will be placed in-play. So the future of the U.S. sports betting opportunity is in-play [bets].”
PointsBet is seeking to acquire market share in the US sports betting scene, since it is growing quite quickly and is expected to attain $2.5 billion in 2021, and a massive $8 billion by 2025. The company bets on in-play wagering, giving customers the chance to create micro-bets in games. There are currently many other companies such as FanDuel who are also investing in in-play technologies.
Aitken also said:
“As the American bettor gets more comfortable with sports betting, they get more comfortable with other options, get more curious, and seek the best technology. And that’s the opportunity for PointsBet. We own our technology. For the NBC deal, the more successful that NBC makes PointsBet, the more they become successful with their equity holding,” Aitken said. “When you think about in-play betting and the future of a sports broadcast, it’s all about that in-game engagement. In-play betting and in-play bet stats integrated into the broadcast can not only make people watch more games but also extend the duration of their viewing. We think in a modern way, and what has worked in the past isn’t going to work in the future. The industry is changing, and betting in America is going to grow. You need to be ahead of the trends.”
Back in January, the company had come to an agreement for an equity deal with the National Hockey League, giving it about $556,000 in stock. PointsBet also went in for an equity deal with NBCUniversal worth about $500 million. It is a five-year long deal that will allow NBC to increase its stake up to 25%.
Banach is currently based in Ireland, and it was announced that all of its co-founders will be joining PointsBet, and that includes CEO Mark Hughes who will be assuming the role of chief operating officer.