BetMakers (ASX:BET) share price is racing 11% higher after this acquisition

Winning bet! A successful acquisition helps tip the betting company's shares 11% higher on Friday

| More on:
A group of happy young people watching sport on a laptop celebrate, indicating a win for sports betting bluebet

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in BetMakers Technology Group Ltd (ASX: BET) have jumped today after the company emerged from its trading halt.

The BetMakers share price resumed trading at the market open and is currently racing up 11% at $1.20 after the completed acquisition was announced. (And it's not Tabcorp Holdings Ltd (ASX: TAH) assets).

What did BetMakers acquire?

In today's release, BetMakers advised the completion of its acquisition of Sportech's racing, tote and digital businesses.

BetMakers said it had received the last of the approvals and clearances required to complete the acquisition. The company expects to formally receive a number of regulatory and other approvals post-acquisition, as well as begin to engage regulators across multiple jurisdictions.

The company first revealed its Sportech acquisition on 1 December 2020, describing it as "transformational for the company's financial and growth prospects".

The $56.2 million acquisition includes three of Sportech's betting solutions businesses across the Americas, the United Kingdom and Europe, and its world-leading tote betting engine.

Betmakers said the acquisition would materially expand its global customer base, technology and geographic reach. In particular, a platform to target growth in the key United States market, including pari-mutuel betting and fixed odds offerings.

What did management say?

BetMakers managing director Todd Buckingham said:

The successful completion now allows us to continue to execute the next stages of our global strategy.

It is not often that such compatible international wagering assets become available in our industry. Accordingly, BetMakers views this acquisition as a pivotal step in seeing the business become the centre of global wagering. We intend to continue to expand in all regions where we see complementary synergies for our business that fits this vision.

BetMakers share price snapshot

Today's announcement offers relief for BetMakers shareholders, after a nasty 30% crash in the last three weeks.

Despite making headway today, the BetMakers share price still needs another 25% to retest its 27 May record close of $1.60.

With today's gains, the company's shares are up 72.8% year-to-date.

Kerry Sun has no position in any of the stocks mentioned.  The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a rough day of trading this Tuesday.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Market News

ASX 200 takes the latest RBA interest rate verdict in stride

The ASX 200 looks to have shaken off today’s RBA interest rate call.

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Share Gainers

Why this ASX 300 stock is soaring 12% after a disastrous year

This company has had a dramatic reversal of fortunes this Tuesday...

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Core Lithium, Imugene, Lifestyle Communities, and Mineral Resources shares are charging higher

These shares are having a good session. What's going on?

Read more »

A miner stands in front oh an excavator at a mine site
Broker Notes

Broker says buy the dip on ASX 200 uranium share with 69% upside

Shaw and Partners says this ASX uranium stock is trading at an attractive price point right now.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Domino's, Lynas, Paladin Energy, and St Barbara shares are sinking today

These shares are having a tough session. What's going on?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

4 ASX All Ords shares up 315% to 682% in a year!

Investors have sent these ASX All Ords shares flying higher. But why?

Read more »

Woman on a swing at a beach, symbolising passive income.
Dividend Investing

Overinvested in Fortescue shares? Here are two alternative ASX dividend stocks

Let’s unearth some other passive income opportunities.

Read more »