PENN - Sports betting M&A: Fanatics confirms deal for PointsBet's U.S. business

2023-05-15 07:02:22 ET

Fanatics ( FANA ) confirmed on Monday it entered an agreement to acquire PointsBet Holdings Limited's ( OTCQX:PBTHF ) U.S. business after media reports broke the deal talks in recent days.

The sports betting company said there are still several steps in the process to complete the acquisition, but both parties are confident in the outcome.

The deal is reported to be worth $150M and is expected to close in the first half of 2024. Finalized details are expected to be announced within a few weeks and PointsBet ( OTCQX:PBTHF ) is anticipated to hold a shareholder vote on the deal in June.

Deal implications: The acquisition will give Fanatics market access into 15 U.S. states (including New York and Michigan) and it will be able to assume PointsBet marketing agreement with NBC. Fanatics ( FANA ) has already been testing its sports betting app in Tennessee and Ohio in May in anticipating of sports betting launches. Roth MKM analyst Edward Engel said the firm views Fanatics's acquisition of PointsBet U.S. as a positive for Penn Entertainment ( PENN ) and Rush Street ( RSI ), but negative for Draftkings ( DKNG ).

For further details see: