BetMakers to acquire horse racing data supplier Punting Form for up to A$20m
ASX-listed betting supplier BetMakers has agreed to acquire ABettorEdge Pty Ltd, trading as Punting Form, in a deal worth up to A$20m.
Punting Form uses proprietary IP and artificial intelligence to create sectional times and benchmarks for horse racing, which are used to create time-based rating systems.Sectional times are the times taken for each horse to complete a section of a race, usually a furlong. Punting Form is currently used by professional betting syndicates, betting operators, content creators and form analysts globally, BetMakers said.
The supplier’s products form an integral part of data requirements for professional horse racing participants, it added.
BetMakers intends to use the sectional times in conjunction with its own technology to deliver enhanced features such as more accurate pricing, speed maps, runner comments and integrity benchmarking.
The firm said it will integrate Punting Form services and data across all of its operating divisions with an immediate focus on its Managed Trading Services division, to allow for pricing improvements across its ratings engine.
Punting Form will also expand its current services to include sectional time ratings for horse racing in North America and other global jurisdictions including New Zealand, the UK and Ireland, as well as adding other racing formats such as greyhound and harness racing.
BetMakers CEO Todd Buckingham: “The synergies across our business are exceptional with both internal use and our external client base benefiting greatly from this acquisition. The team at Punting Form are very experienced in delivering B2B wagering solutions and we are excited to have them onboard at BetMakers.”
BetMakers said the acquisition is strategically important across several of its business segments. In addition to improving the back-end tools, pricing and trading margins associated with its Global Betting Services, it will also drive more liquidity in its Global Tote offerings, it said.The deal will also improve pricing and confidence in overseas content through BetMaker’s Global Racing Network and will ensure BetMakers’ proprietary ratings engine is powered with the best available data for US fixed-odds racing, facilitating a shift for tote operators to move into fixed-odds wagering, according to the supplier.
Upon completion, which is expected by the end of 2022, BetMakers will pay an initial consideration of A$3m in cash to Punting Form’s current owners, Hong Kong-based JJ Ventures Ltd and Hkelly Holdings Ltd.
A further A$3m will be payable upon the successful rollout of Punting Form technology to the US market, for a total of A$6m payable in the first year of the deal.
The remaining A$14m can be earned by Punting Form’s sellers depending on the delivery of incremental revenues and profits, with $5m to be paid at the end of years one and three and A$4m payable in year two.
After the initial A$3m cash consideration, all subsequent payments may be made in cash or BetMakers stock at BetMakers’ discretion.“Sectional Times are at the forefront of any ratings system and required by any serious ratings engine,” said BetMakers CEO Todd Buckingham.
“The synergies across our business are exceptional with both internal use and our external client base benefiting greatly from this acquisition. The team at Punting Form are very experienced in delivering B2B wagering solutions and we are excited to have them onboard at BetMakers.”
BetMakers’ share price tumbled on Friday (21 October) after B2B gambling industry venture capital firm Waterhouse VC offloaded some 10 million shares in the business, generating around A$11.4m in the process, according to The Motley Fool.
Shares in the firm are currently down some 60% in 2022 to-date.