Under the acquisition agreement, BetMakers will pay a total consideration of AU$1.5m (£779,316/€910,620/US$977,501) to take ownership of the Racelab assets. However, there is a clawback clause of up to $500,000, dependent on key customer obligations within 30 days of closing.
BetMakers said that the deal represents a “highly strategic acquisition” for the business. It adds race form, preview and statistics technology to its ecosystem, as well as proprietary fixed-odds pricing technology and associated algorithms.
Racelab assets include ProForm informatics and enhanced content and Odds Engine pricing and trading technology.
Other benefits include potential to further expand services in the harness and greyhound form and preview racing sectors. In addition, BetMakers said the deal provides an ongoing partnership with global racing rights holder Sports Information Services Limited to develop products and services for their customers worldwide.
“We are very pleased to secure this unique set of assets that hold tremendous potential for BetMakers,” said BetMakers CEO Jake Henson. “We have acquired market-leading technology that further broadens the capabilities of BetMakers’ racing ecosystem for both wagering operators and rights holders alike, across the globe.
“In addition, we are uniquely placed to integrate Racelab operations into our existing global infrastructure. This drives new revenues via our existing sales channels and continues to develop upon the strategic vision of both ProForm and Odds Engine.
“We are very confident in our ability to deliver substantial value from this acquisition. It will contribute towards both revenue and earnings growth in FY25 and beyond.”
Betr deal to end as BlueBet acquisition confirmed
Meanwhile, BetMakers is set to end its platform and services agreement with Betr in the wake of the latter’s acquisition by BlueBet.
Announced today (11 April), BlueBet Holdings has entered a binding asset sale agreement to acquire the Betr wagering business. The deal is due to complete by July.
The merger will see Betr customers leave the BetMakers platform and migrate to BlueBet. As such, this means there is no longer a need for the BetMakers partnership.
Under the termination agreement, Betr will continue to use BetMakers’ service under a reduced service arrangement until migration completes. This is due by the end of August this year.
Should migration not complete before 1 October, Betr will pay BetMakers a fee of $500,000 per month until the migration ends.
Payment details are also available for the preceding months. Fees include $3.75m, paid to BetMakers in March, $2.25m by 14 June and between $1.5m to $2.0m by 13 September. The latter depends on when customer migration completes.
Opening up more options for BetMakers
Conclusion of this deal will also allow BetMakers to work with more operators in Australia and New Zealand.
The agreement gave Betr exclusivity over certain premium services across the two countries. However, with the deal set to come to an end, BetMakers is free to offer those services to other customers.
“BetMakers is pleased with the agreed outcome between the parties,” CEO Henson said. “We are satisfied with the terms to recover outstanding amounts owed to BetMakers by Betr.
“In addition, we are content with the agreement on the ongoing terms that are a result of Betr entering into a new transaction. We wish the Betr team all the best in its new venture and will continue to be supportive wherever we can along that path.
“The executed agreement places BetMakers on a much stronger footing going forward. It strengthens our cash position and relieves the company of significant resource commitment, both now and into the future.
“This provides the ability to further reduce our overall cost base and the opportunity to redeploy key technology and development personnel to expedite the next generation roll-out for clients globally, which will unlock additional efficiencies, significant savings and an improved product offering for BetMakers’ customers.”
BetMakers completes Punting Form payment
In other news, BetMakers has paid the remaining special deferred amount due in relation to its acquisition of Punting Form.
BetMakers acquired ABettorEdge, trading as Punting Form, for AU$20.0m in November of 2022. It includes clauses for extra payments for performance targets.
Last month, the sellers of Punting Form produced North American race and sectional data. This meant they satisfied a “special event” set out in the acquisition deal and are due an additional $3.0m.
BetMakers made an initial $500,000 cash payment in March. A further $2.5m has now been paid, with this comprising $1.0m in cash and $1.5m in shares.