Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Pointsbet (ASX:PBH) share price on watch after Banach deal

The Pointsbet Holdings Ltd (ASX:PBH) share price is on watch this morning after revealing an acquisition called Banach Technology. 

The Pointsbet Holdings Ltd (ASX: PBH) share price is on watch this morning after revealing an acquisition called Banach Technology.

Why will the Pointsbet share price be on watch?

Pointsbet’s Irish subsidiary called Lockspell has entered into a binding agreement to acquire Banach Technology Limited.

The acquisition will cost US$43 million on a cash and debt free basis. It will be paid with 55% in cash and the rest in shares – 1,752,875 of them to be precise.

Banach is a Dublin-based provider of risk management platforms and quantitative driven trading models that support pre-game and in-play betting products across numerous sports, including the four major American sports and international soccer.

Pointsbet will provide Banach with US$4 million in funding to assist in the conversion process of existing equity options.

The ASX betting business said that the Banach team is deeply experienced, particularly in leading pre-game and in-play sports wagering markets, having previously established the quantitative division of Paddy Power (now called Flutter Entertainment).

What will this mean for Pointsbet?

Pointsbet said that this acquisition will position Pointsbet as a leader of in-pay sports wagering in the US, just as in-play wagering is expected to grow exponentially.

The company said that within the next three years, in-play wagering is expected to be around 75% of all sports wagering in the US.

Pointsbet also said that through “highly sophisticated” risk management algorithms and deep trading experience, Banach’s technology will allow Pointsbet to optimise achieved margin and offer superior value to customers.

Banach currently provides services to several of the world’s premium sports book operators. Pointsbet will honour these contracts, with the revenue generated to cover the costs of the Banach business.

Management comments

Pointsbet CEO and Managing Director Sam Swanell said: “In Banach we have found a like-minded team of technologists and the acquisition is a preferable approach to developing our in-play capabilities organically, given it allows us to dramatically ramp up our speed to market while still allowing us to own market leading technology and continue to control our destiny.”

Time to jump on the Pointsbet share price?

This seems like a solid acquisition by Pointsbet which could help growth. The US market is a huge potential opportunity – if Pointsbet gets it right then it could become a much bigger business. If management thought this was necessary, then it’s a good move.

Pointsbet could be one to watch if its market share keeps growing.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content