Jay-Z-backed sports giant Fanatics is set to acquire PointsBet’s US operations for $225 million.
The two companies shook hands on Sunday night and released a joint statement confirming the deal shortly after.
The statement said that Fanatics would acquire PointsBet’s US business and that the acquisition would be completed in several steps.
Both companies confirmed they were confident the deal would go through and that Fanatics Betting and Gaming (FBG) would take over PointsBet’s US operations as agreed.
PointsBet won’t sell its Australian business and will continue operations in Canada and India too.
It will also continue to operate as a company listed on the Australian Stock Exchange.
The company’s sports betting, racing, and iGaming platform will continue to be operated by PointsBet and wasn’t included in the Fanatics deal.
PointsBet Shareholders Advised to Vote in Favour of the Deal
Under the terms of the agreement, PointsBet will provide services to Fanatics before the deal is completed and receive financial compensation for them.
PointsBet’s commitments arising from the partnership with NBCUniversal will be handed over in full to Fanatics.
PointsBet will be released from guarantee requirements stemming from the media services agreement, while NBCUniversal will also give up exercising equity options.
The deal will go through only after PointsBet shareholders cast their vote in late June.
However, the PointsBet board has already instructed shareholders to support the deal.
If the transaction is successful, shareholders will get the proceeds of the sale, as well as any cash surplus that is not needed for PointsBet’s remaining operations.
This distribution is estimated to be between $1.07 and $1.10 per share.
