3 minute read
It looks like another Aussie company has scored the interest of wagering giant Entain.
The UK-based company is placing a bet on local ASX aspirant Racing and Sports, which is fronting investors at the moment for its IPO marketing, ahead of a book build in the last week of October.
The business, which provides wagering data, analytics and news, is believed to be raising $29 million through the upcoming float, having increased the size of the offer to accommodate a cornerstone investment from the Ladbrokes owner, Entain.
The investment in the future small cap comes after the £12.3 billion ($22.8 billion) Entain made a play for a much bigger Australian company earlier this year, lobbing a $3.5 billion bid for Tabcorp's wagering business. But, Tabcorp has instead gone down the demerger path, intent on splitting off its lotteries division by mid-2022.
Now, Entain itself has been subject to some M&A activity, attracting bids from MGM earlier this year and in September, an £18.4 billion (£28 per share) takeover offer from betting giant Draftkings.
The bid was double that of MGM's offer earlier this year. MGM has a partnership with Entain in the US and would likely need to be on board with the takeover for any deal to get done.
Racing and Sports has been a provider of high-quality data and premium content to industry participants, including Entain, for many years. Its products are used by the likes of Ladbrokes, Tabcorp, bet365, Sportsbet and Betfair.
While Entain is investing, there's no strategic relationship between the pair at this point.
Racing and Sports operates a large database on thoroughbred horses, develops interactive racing technology and publishes racingandsports.com.
Having been founded in 1999 by Gary Crispe and Robert Vilkaitis, the business recorded $5.3 million in revenue in the 2021 financial year and $2.9 million EBITDA.
While terms are yet to be set for the float, it's understood to be targeting a market capitalisation of $65 million to $69 million.
Online article taken from The Australian Financial Review, published on Monday, 18th October 2021, Author, Anthony Macdonald, Yolanda Redrup and Kanika Sood.
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