Fanatics Betting and Gaming is set to acquire PointsBet’s US arm for US$225m after submitting an improved offer earlier this week, with DraftKings failing to formalise their $195m bid, according to the Australian-listed company.
Fanatics, which had submitted the opening $150m bid for the asset, was subsequently knocked back by DraftKings’ $195m move.
PointsBet gave DraftKings nine days to formalise what was a non-binding indicative offer but revealed on Tuesday that the US operator had not done so.
And in the meantime, Fanatics improved its offer by 50 per cent to $225m.
PointsBet chairman, Brett Paton, said the increased bid “provides a superior price plus certainty.”
He added that the $175m – including the $75m increase in headline cash consideration – that Fanatics is to pay at the initial completion is “an element which we regarded as a welcome and significant benefit to our shareholders.”
Fanatics will then pay the remaining $75m at the subsequent completion.
Paton concluded: “Subject to shareholder and regulatory approvals, our US team will have a strong future as part of the Fanatics Betting and Gaming group and PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet.”
A DraftKings statement simply confirmed it was “no longer pursuing” the acquisition.
PointsBet shareholders will vote on the Fanatics deal on Friday.
“The board continues to unanimously recommend that shareholders vote in favour,” PointsBet’s statement said.
