MELBOURNE: PointsBet Holdings’ Irish subsidiary, Lockspell Limited has entered into a binding share purchase agreement (SPA) to acquire Banach Technology Limited, a news release said.

The transaction is subject to customary completion conditions and is expected to close in April 2021.

Banach was founded by Rob Reck, Mark Hughes, Alex Zevenbergen and Hadrien Lepretre, all of whom played a leading role in establishing the Quants department at Paddy Power.

Banach has a team of 40 technology and product staff with deep experience creating products for use in mature and sophisticated sports wagering markets. This acquisition will position PointsBet as a leader of in-play sports wagering in the United States, just as in-play wagering is expected to grow exponentially.

Within the next 3 years, in-play wagering is expected to represent c. 75% of all sports wagering activity in the United States. This acquisition accelerates PointsBet’s technology roadmap and places the Company in a prime position to take advantage of this growth in sports betting activity in the United States.

Additionally, through highly sophisticated risk management algorithms and deep trading experience, Banach’s technology will allow Pointsbet to optimise achieved margin and offer superior value to their customers. Banach currently provides services to several of the world’s premium sports book operators.

PointsBet will continue to honour these existing contracts, with the revenues generated assisting in covering the overheads of the Banach business (the majority of which are staffing costs).

Commenting on the transaction, PointsBet’s Group CEO and Managing Director Sam Swanell said: “We are delighted with the acquisition of Banach and that its well credentialled team have agreed to join PointsBet.

As legalisation to approve US sport betting accelerates across the US, it has become clear that the in-play opportunity will be very significant and those with the best depth and breadth of product will win. Technology is at the forefront of everything we do at PointsBet and we have undertaken an in-house approach to proprietary technology as the key priority.

In Banach we have found a like-minded team of technologists and the acquisition is a preferable approach to developing our in-play capabilities organically, given it allows us to dramatically ramp up our speed to market while still allowing us to own market leading technology and continue to control our destiny”.

Mark Hughes, Banach CEO said: “I am extremely proud of the business and team we have built over the last few years. We could not be more excited about the burgeoning US opportunity and the role that the Banach team will play in accelerating and strengthening PointsBet’s pre-game, in-play and free-to-play offering in the United States. It is great to be part of such a forward-thinking global organisation.”

PointsBet is a corporate bookmaker with operations in Australia and the United States. PointsBet has developed a scalable cloud-based wagering platform through which it offers its clients innovative sports and racing wagering products. PointsBet’s product offering includes Fixed Odds Sports, Fixed Odds Racing, and PointsBetting.