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Fiona Simmons May 15, 2023 2 min read
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Fanatics to Acquire PointsBet USA in a $150M Deal
The deal is in line with Fanatics’ previously announced plans to expand its sports betting business in the United States
Global digital sports platform Fanatics has announced its decision to purchase PointsBet’s US assets, just as earlier reports had suggested. According to the official announcement, the former company will acquire the sports betting operator in a $150 million deal.
The money will be paid in cash, as agreed by the two companies. At first, Fanatics will pay $100 million when the agreement closes, with a payment of $50 million to follow in February 2024.
However, the agreement is still subject to approval by PointsBet’s shareholders. They will decide whether to greenlight the deal during a shareholder meeting set to take place next month.
According to PointsBet, the net sale proceeds will be distributed to its shareholders, along with a large portion of its cash reserves.
The deal is in line with Fanatics’ previously announced plans to expand its sports betting business in the United States. It also confirms PointsBet’s earlier decision to sell its North American assets and exit the market.
The Deal Will Expand Fanatics’ US Footprint
Fanatics and PointsBet released a joint statement on the new agreement, saying that they are confident in the outcome. While there are still several steps in the process to finalize the deal, the two companies are certain that everything will go smoothly. They promised to provide further details and timely updates in the coming weeks.
The M&A deal will further bolster Fanatics’ foray into US sports betting. The company recently launched its online sportsbook in the states of Ohio and Tennessee. The fresh Fanatics Betting and Gaming brand is bullish on cementing itself as a leading wagering brand in America. The launch highlighted Fanatics’ diversification efforts to explore new business opportunities.
Fanatics is optimistic about its platform because of its established audience and the existing synergies between the betting brand and the main Fanatics platform. Furthermore, the company plans to launch various promotional initiatives that will channel more people toward Fanatics Betting and Gaming.
The acquisition of PointsBet’s US assets will arm Fanatics with additional tech and trading capabilities. It will also provide it with access to markets where it doesn’t currently have a presence.
PointsBet was recently involved in a crypto phishing scam and was forced to temporarily shut down its email communications after a third-party provider sent emails involving cryptocurrency. In addition, the company had to cease its partnership with the University of Maryland amid regulatory changes.
Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at GamblingNews.com is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.