The Australian arm of the Japanese consumer tech giant MIXI recently revised its proposal for the acquisition of PointsBet, an Australian sports betting giant. Now, the government has approved the arrangement, allowing the two companies to proceed.
MIXI and BlueBet Fought for PointsBet
Earlier this year, MIXI Australia put forward a proposal to acquire PointsBet for approximately AUD 353 million (roughly $229 million).
This proposal followed an earlier arrangement proposed by BlueBet, in which the rival sought to acquire the Australian sportsbook for AUD 340 million ($220.5 million). Following BlueBet’s acquisition by Betr Entertainment, the latter company amended the deal, submitting an AUD 360 million offer instead. Betr also asserted that synergies could amount to over AUD 40 million a year, delivering a potential value outcome of AUD 1.33 per share for PointsBet shareholders.
While PointsBet’s leadership acknowledged at the time that Betr’s offer constituted a superior proposal, it didn’t rule out the possibility of accepting the MIXI proposal either. As a result, MIXI eventually came forward with an even juicier proposal, offering PointsBet AUD 402 million ($261 million) instead.
The latest proposal by the Japanese conglomerate valued PointsBet at AUD 1.20 per share.
MIXI’s Proposal Receives the Go-Ahead by FIBR
Yesterday, PointsBet confirmed that the latest proposal has been cleared by the Australian Foreign Investment Review Board (FIBR), allowing it to proceed. MIXI Australia therefore received confirmation per the Foreign Acquisitions and Takeovers Act 1975, meaning that the government does not object to MIXI acquiring PointsBet.
MIXI had noted that it was prepared to consider an off-market takeover bid if its proposal failed to receive regulatory approval.
The deal, however, is still subject to additional regulatory approvals, including ones from regulators in Ontario where PointsBet also has a presence.
If approved, the agreement will significantly expand MIXI’s gaming presence in Australia. The company already operates the betM brand in the Northern Territory and is looking forward to tapping into the growing demand for sports betting in the country.