PointsBet agrees to $353 million acquisition by MIXI

MELBOURNE: PointsBet Holdings Limited, an Australian corporate bookmaker, has entered into a binding agreement to be acquired by Japanese consumer technology company MIXI, Inc. in a deal valued at approximately $353 million.

The acquisition, announced on Feb. 26, 2025, will see MIXI Australia Pty Ltd, a wholly owned subsidiary of MIXI, acquire 100% of PointsBet’s issued share capital through a scheme of arrangement.

Under the terms of the deal, PointsBet shareholders will receive $1.06 in cash for each share they own, representing a significant premium of 27.7% over PointsBet’s closing price on Feb. 25, 2025, and 23.9% over its one-month volume-weighted average price. The transaction implies an enterprise value of $353 million and an implied EV/EBITDA multiple of 25.2x to 32.1x based on PointsBet’s fiscal year 2025 EBITDA guidance.

The PointsBet Board has unanimously recommended that shareholders vote in favor of the scheme, pending the absence of a superior proposal and subject to an independent expert’s conclusion that the deal is in the best interests of shareholders. Each PointsBet director also intends to vote their shares in favor of the transaction.

The acquisition is subject to customary conditions, including regulatory approvals from gambling authorities in Ontario and the Northern Territory, approval from the Australian Foreign Investment Review Board, and shareholder and court approval. The scheme is expected to be implemented by mid-June 2025, with a shareholder vote anticipated in late May.

MIXI, a Tokyo-based company with operations in mobile games, communication services, and sports betting, generated approximately 147 billion yen ($1.3 billion) in annual net sales in 2024. Its Australian subsidiary, licensed as a sports bookmaker in the Northern Territory, operates under the brand “betM.”

Brett Paton, Chairman of PointsBet, described the transaction as a “compelling opportunity” for shareholders to realize cash value at a significant premium. Sam Swanell, PointsBet’s Managing Director and Group CEO, emphasized that the offer reflects the value of PointsBet’s technology assets and its reputation in the wagering markets of Australia and Canada.

The deal is not subject to financing conditions, with MIXI holding over 100 billion yen ($1 billion) in cash and deposits as of Dec. 31, 2024. The agreement includes customary exclusivity obligations and break fees, with PointsBet potentially required to pay a $3.5 million fee under certain circumstances, and MIXI liable for a reciprocal fee of up to $2.5 million.

PointsBet shareholders are not required to take any immediate action. A scheme booklet detailing the transaction, including the independent expert’s report, will be sent to shareholders in late April 2025.

Flagstaff Partners acted as financial adviser to PointsBet, while Baker McKenzie provided legal counsel. The acquisition marks a significant consolidation in the global sports betting industry, with MIXI expanding its footprint in the Australian market.