The Betmakers Technology Group Ltd (ASX: BET) share price is on watch after revealing more acquisitions.
What is Betmakers acquiring?
Betmakers has announced two acquisitions today.
It has acquired the technology platform assets, databases and intellectual property (IP) of racing data company Form Cruncher.
Betmakers is also buying the technology and IP associated with the Swopstakes betting product. Swopstakes‘ betting product runs sweepstakes on racing and sports events including the AFL, NRL, NBA and the NFL.
The company said that the Form Cruncher and Swopstakes assets are valuable additions to Betmakers’ core business, which is expected to enhance the overall product offering across its global footprint.
These new assets will be integrated into the Betmakers network and create wagering products and content to monetised throughout its global suite of customers, including racing bodies, race tracks, retail and digital wagering operators.
For the Form Cruncher assets, it’s going to pay AU$1 million and a performance payment of up to AU$1 million. This will be paid half in cash and half in new shares.
For Swopstakes, it’s paying AU$634,750 in cash and a performance payment of up to AU$15 million. The performance payment will be double the profit generated over the later of either the 12 months ending 31 December 2023, or 12 months after the integration of the Swopstakes betting product. Betmakers may choose to pay some of this in new shares.
Management comments
Betmakers CEO Mr Todd Buckingham said: “Betmakers currently supplies multiple sources of informatics globally and the acquisition of Form Cruncher will allow us to bring this in-house and create a normalised offering across all of our global jurisdictions in which we operate.
Regarding Swopstakes, Mr Buckingham said: “We believe there is an opportunity to adapt the product for our clients and achieve scale through integration, promotion and distribution through Betmakers’ extensive global network.”
Summary thoughts about Betmakers and the share price
Betmakers is making a lot of moves at the moment. Time will tell whether these acquisitions can be integrated well and become useful to the overall business.
I’m not sure how much profit growth potential Betmakers has, so I’ve got my eyes on other ASX growth shares for now.
