BetMakers Acquires Form Cruncher and Swopstakes Assets
- BetMakers has acquired technology platform assets, databases and IP of racing data company Form Cruncher.
- BetMakers has also acquired the technology and IP associated with the Swopstakes betting product
- The Form Cruncher and Swopstakes assets are valuable additions to BetMakers' core business, which is expected to enhance the overall product offering across a global footprint.
- The new assets will be integrated into the BetMakers network and create wagering products and content to be monetised throughout the global suite of customers, including racing bodies, race tracks, retail and digital wagering operators.
Acquisition of Form Cruncher assets
Form Cruncher processes racing event data such as odds, price fluctuations, sectional times and results to create advanced form information and dynamic content that can be adapted and customised globally. Features include: Race and runner ratings, Speed ratings and maps, Runner comments, Race overviews and suggested tips that can be customised to suit each platform partner's 'Branding and language'.
BetMakers Chief Executive Officer, Mr Todd Buckingham, said:
"The acquisition of Form Cruncher's racing data assets and form processing database is a valuable addition to our core business, and one that will allow us to grow our overall product offering across a global footprint.
BetMakers currently supplies multiple sources of informatics globally and the acquisition of Form Cruncher will allow us to bring this in-house and create a normalised offering across all of our global jurisdictions in which we operate.
Leveraging BetMakers' existing infrastructure and data, the new assets will be plugged in to our network and create wagering products and content to be monetised throughout our global suite of customers, including racing bodies, race tracks, retail and digital wagering operators."
Under the terms of the agreement, BDNA has acquired certain Form Cruncher assets ("FC Assets"), which include:
- all websites, digital platforms, apps and other technology used by or developed for the Form Cruncher business;
- all Intellectual Property, computer hardware (including network and telecommunications equipment), software, source code and code bases related to any domain names, websites, digital platforms, apps and other technologies used by or developed for the Form Cruncher business, including odds feeds, bookmaker integrations and marketing tools created by, owned, used, leased, licensed, commissioned or controlled by Form Cruncher.; and
- all domain names associated with the Form Cruncher business.
In consideration for the FC Assets, BetMakers has agreed to pay an initial cash payment of AUD$1mil and a performance payment of up to AUD$1mil as follows:
- cash payment of AUD$500,000 to Form Cruncher paid in two equal instalments on 23 December 2021 and 23 June 2022;
- the issue of 443,262 ordinary shares in BetMakers ("Shares") under the Company's placement capacity under ASX Listing Rule 7.1 to nominees of Form Cruncher today, representing AUD$500,000 divided by $1.128, being the volume weighted average price of Shares over the 15 days on which trades in the Shares occurred ("15-day VWAP") immediately prior to signing and completion of the agreement ("Completion Shares"); and
- subject to the satisfaction of certain performance milestones over the financial year ending 30 June 2023, a performance payment of a maximum of AUD$1mil to be paid as follows:
o pay an amount up to a maximum of AUD$500,000 in cash to Form Cruncher; and
o issue to Form Cruncher such number of Shares up to a maximum of $500,000 divided by the 15-day VWAP immediately prior to the Performance Payment Date, subject to a floor price of $0.90, being a maximum of 555,556 Shares ("FC Performance Shares").
Acquisition of Swopstakes assets
Swopstakes is a wagering platform, specifically developed to run sweepstakes on racing and sports events including AFL, NRL, NBA and NFL.
Swopstakes' proprietary betting product allows customers to purchase tickets in featured events and play tournament-style live games on real racing and sports events. Players can buy, sell or swap tickets during the course of an event until one ticket holder is eventually the winner.
BetMakers Chief Executive Officer, Mr Todd Buckingham, said:
"We have followed Swopstakes as a product for some time and have been impressed with both the concept and technology.
We believe there is an opportunity to adapt the product for our clients and achieve scale through integration, promotion and distribution through BetMakers' extensive global network."
Under the terms of the agreement, BDNA has acquired the Swopstakes proprietary betting product (including all technology and intellectual property) ("SS Assets") that allows customers to purchase betting tickets in a single event where:
- each event ticket has a unique combination of betting contingencies formed into a multibet;
- only one event ticket per event is able to win; and
- event tickets are pooled and are able to be sold by more than one wagering operator.
In consideration for the SS Assets, BetMakers has agreed to pay a cash payment of AUD$634,750 (plus GST) and a performance payment of up to AUD$15mil as follows:
- $634,750 (plus GST) paid to Swopstakes today; and
- a performance payment equal to 2x (two times) the profit generated from the Swopstakes betting product over the later of i) 12 months ending 31 December 2023 or ii) 12 months following integration of the Swopstakes betting product. The maximum performance payment payable is AUD$15mil to be paid in cash, Shares or a combination thereof (at the Company's discretion). If the Company elects to satisfy any part of the performance payment with Shares, each Share ("SS Performance Share") will be valued at the 15-day VWAP immediately prior to the payment date which is to be no later than 31 March 2024, subject to a floor price of $1.28 (being a maximum of 11,718,750 Shares).
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX:BET) (FRA:T07) is an ASX-listed holding company and a global provider of online wagering products and services to both wholesale and retail markets through its various wholly owned subsidiaries. The Company operates a retail wagering business, offering consumers wagering, fantasy tournament and content products and services.
Betmakers Technology Group Ltd