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

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Megaport, Pilbara Minerals, Vysarn, and WiseTech shares are falling today

These shares are ending the week in the red. But why?

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Share Market News

5 things to watch on the ASX 200 on Friday

A good finish to the week is expected for Aussie investors.

Read more »

A man has computer-generated images rushing through his head indicating an AI (Artificial Intelligence) concept of a communication network.
Technology Shares

ASX investors are obsessed with Nvidia shares! Here's why

The global chipmaker reported a 94% increase in annual revenue in the third quarter.

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »