Australia-listed wagering company TopBetta Holdings Ltd. (TBH) is buying data feed and bookmaker comparison website DynamicOdds Pty. Ltd. as part of its bid to expand its business globally.
TBH informed the Australian Securities Exchange on Thursday that it entered into “a binding, conditional heads of agreement” to acquire 100 percent shares of DynamicOdds and the associated licensing owned by C.D.K. Limited.
DynamicOdds has been a key data supplier for Australia’s Principal Racing Authorities (PRAs) since 2016. The firm also offers an odds comparison site, as well as a subscription service that allows users to place bets with bookmakers.
According to the agreement, TBH must issue to Dynamic IT Group Pty. Ltd. 10 million unquoted options on the bookmaker’s shares, pegged at AUD0.20 (US$0.15) per option within two years from the date of issue.
On completion, TBH must pay AUD1.5 million (US$1.13 million) to DynamicOdds shareholders in consideration for the acquisition of the platform’s shares and AUD1 million ($755,600.9) to C.D.K. for asset purchase.
TBH will also have to pay C.D.K another A$7.5 million ($5.67 million) or issue shares with the same value. Should the Australian-listed firm fail to discharge C.D.K.balance within 12 months of completion, TBH must transfer the DynamicOdds shares and the assets back to the latter’s shareholders.
CEO Todd Buckingham said the acquisition provides a huge opportunity to expand TopBetta‘s business into other verticals via partnerships with sporting and racing bodies globally, noting that the acquisition of DynamicOdds “is the perfect complementary business to continue with our company’s growth.”
DynamicOdds CEO David Begg said the acquisition would provide opportunities within racing and sports markets, not only in Australia but also in the UK and the United States.
“Since its inception, DynamicOdds has established itself as an integral part of the Australian wagering landscape at both retail and commercial levels,” Begg said in a statement.
TBH’s total revenue hit AUD6.9 million ($5.5 million) in the October to December 2017 period, a 401 percent increase from AUD1.377 million ($1.1 million) in the same period a year earlier.
The Australian bookmaker attributed the revenue jump to the growth of Alderney-based subsidiary The Global Tote (Tote), and a positive quarterly period for its Australia-based retail platform.