PointsBet has welcomed a significant equity investment from SIG Sports Investments Corp. (SIG Sports). SIG is a member of the Susquehanna International Group of Companies, one of the largest proprietary financial trading firms globally.
SIG Sports has purchased 38,750,000 shares worth A$94.16m ($65.83m) at A$2.43 ($1.43) per share. It represents a 15% premium to the 5-day value-weighted-average-price (VWAP) to 17 June 2022.
This move will make SIG Sports PointBet’s largest shareholder, representing 12.8% of the company’s capital, following issuance. SIG Sports will also utilise Nellie Analytics Limited, one of its member companies, to provide in-depth sports analytics and quantitative modelling services to PointsBet’s existing capabilities.
The new shares will be issued under PointsBet's current placement capacity and are expected to be quoted around 23 June 2022.
Commenting on the investment, SIG Sports Co-founder and Managing Director Mr Jeff Yass said: “After several years of thoroughly evaluating the North American sports betting market for the right partner, SIG Sports is pleased to have made what we consider to be a long-term investment in PointsBet.
“We have been following their journey for some time and have developed a very positive view of the overall business operations and the capability of the PointsBet leadership team. We believe PointsBet has great potential for future growth and success in the North American sports betting market and SIG has both the analytics and capital to help realize that potential.”
PointsBet Chairman Mr Brett Paton is also happy with the acquisition. He said: “We are delighted to pair up with a visionary investor which has committed ongoing support and is eminently qualified in analytical trading in financial markets, and now in sports. The cultural alignment between both organisations is strong, and this investment will assist with expanding and growing our North American operations as we seek to lead in in-play betting and enhance the overall customer experience.”
PointsBet is a major Australian sports wagering operator and iGaming provider, founded in 2015. They launched in the US in 2018 and are now operating in New York, Illinois, Michigan, New Jersey, Virginia, Indiana, Colorado, Iowa and West Virginia with plans to roll out operations across the rest of the US.