Takeover officially concluded
Fanatics Holdings’ brand Fanatics Betting and Gaming (FBG) has officially completed its acquisition of PointsBet’s US businesses, a process that began in June 2023.
the total takeover price valued at $225m
The closing deal was completed in Illinois, where FBG acquired the final PointsBet business included in the total takeover price valued at $225m.
In a news release last week from the holding company, Fanatics stated PointsBet had “confirmed receipt of the final installment of the headline purchase price.”
PointsBet has transferred the remaining assets that make up its US sports betting, advance-deposit wagering, and iGaming operations. Included in the final handover of PointsBet’s assets was Banach Technology, a copy of the PointsBet platform, and the accompanying license for using it.
Fanatics growth boosted
The closure of the PointsBet acquisitions gives Fanatics Sportsbook access to 95% of the US’s addressable online sports betting market.
In last week’s press release, FBG CEO Matt King said the takeover of PointsBet’s US businesses:
has super charged our expansion plans.”
King explained the boost was driven by the migration of both PointsBet’s customers to Fanatics and the addition of its technology to the Fanatics Sportsbook and Casino platform. He added that the acquisition also gives Fanatics “an incredibly talented team of passionate leaders from the ranks of PointsBet USA that have already made an impact on our business.”
Subject to pending regulatory permissions, the addition of Illinois gives FBG an online sports betting presence in 19 states from Arizona to West Virginia. The sports merchandizer-cum-betting brand will also roll out retail betting operations in the 19 states, including “the only retail sportsbook inside an NFL stadium” at Maryland’s Commanders Field.
Done and dusted
The official completion of the PointsBet USA acquisition dates back to June when the shareholders of PointsBet Holdings voted to approve the $225m bid from Fanatics.
For a while last year, however, it was touch and go whether DraftKings might stymie Fanatics’ ambitions to gain a foothold in the US sports betting market. In May, both Fanatics and PointsBet signed off a joint statement that both parties were confident in closing the deal for the former’s bid of $150m cash. But then along came DraftKings with a $195m offer.
Instead, DraftKings, which according to a new survey is now the US’s top ranking online sportsbook, did not respond to Fanatics’ improved bid.