PointsBet Holdings Ltd (ASX: PBH) shares are taking off on Wednesday morning.
At the time of writing, the ASX tech stock is up 34% to $1.11.
This follows news that the sports betting company has accepted a takeover offer.
ASX tech stock jumps on takeover agreement
According to the release, Pointsbet has accepted an offer from MIXI that will see the latter acquire the company through a scheme of arrangement in an all-cash transaction.
MIXI is a Japan-based consumer technology company with a strong presence in mobile gaming, social networking, and sports management.
It operates publicly managed sports betting services and has over 1,600 employees worldwide. In Australia, MIXI operates as a licensed sports bookmaker in the Northern Territory under the betM brand.
A significant premium for shareholders
Under the terms of the agreement, PointsBet shareholders will receive $1.06 in cash per share. This represents a premium of:
- 27.7% to the closing price of PointsBet shares on 25 February 2025.
- 23.9% to the one-month volume-weighted average price (VWAP).
The offer also values the company at an enterprise value of $353 million and implies an enterprise value-to-EBITDA multiple of 25.2x – 32.1x based on PointsBet's FY 2025 EBITDA guidance range.
PointsBet board backs the deal
According to the release, the PointsBet board has unanimously recommended that shareholders vote in favour of the scheme. This is subject to no superior proposal emerging and an independent expert concluding that the offer is in the best interests of shareholders.
Furthermore, all PointsBet directors intend to vote their own shares in favour of the deal under the same conditions.
However, the acquisition remains subject to several key conditions. This includes shareholder and regulatory approvals. But if all conditions are met, the takeover is expected to be completed by mid-June 2025.
Commenting on the agreement, PointsBet's chair, Brett Paton, said:
The PointsBet Board unanimously recommends that PointsBet shareholders vote in favour of the Scheme, subject to the qualifications outlined in this announcement. When considering any proposal, the PointsBet Board has consistently stated it is committed to maximising value for PointsBet shareholders.
The PointsBet Board believes this transaction represents a compelling opportunity for PointsBet shareholders to realise certain cash value, at a significant premium to recent trading prices and at an implied FY25e EV/EBITDA multiple which compares very favourably with historical sector trading multiples and multiples associated with other transactions in the sector.
Competing offer
Just before the market open, Bluebet Holdings Ltd (ASX: BBT) announced that it has made a competing takeover offer.
The rival sports betting company said:
BlueBet believes its offer, which has a combined equity value of $340 – $360 million through a cash pool of $240 – $260 million and scrip consideration of $100 – $120 million, and with identified synergies expected to be at least $40 million annually, presents a highly attractive offer for PointsBet shareholders, and BlueBet remains committed to exploring and progressing this proposal with PointsBet.
Results
PointsBet also released its results this morning for the first half of FY 2025.
It reported a 6% increase in revenue to $124.4 million but an EBITDA loss of $3.3 million, and a net loss after tax of $17.2 million.
