PointsBet board approves MIXI acquisition offer despite competing bid from BlueBet
PointsBet has approved a takeover bid from MIXI Australia, a subsidiary of Japanese digital entertainment group MIXI Inc., via a scheme arrangement that will transfer 100% of PointsBet’s shares to MIXI Australia. Under the deal, PointsBet shareholders will receive $1.06 per share in cash, representing a 27.7% premium to the closing price on February 25, valuing the transaction at approximately AU$353 million. This equates to an EV/EBITDA multiple of 25.2x to 32.1x based on FY25 EBITDA forecasts.
The PointsBet board unanimously recommends the MIXI offer, as announced in the company’s half-year earnings report on February 25. A shareholder vote is expected in late May, with the scheme implementation planned for mid-June.
MIXI’s parent company operates various sports and gaming businesses, including FC Tokyo football club, horse racing site Net Dreamers, and betting platform Chariloto.
BlueBet’s Competing $360 Million Bid
On February 18, BlueBet submitted a competing takeover bid via a scheme of arrangement valued at around $360 million. This includes a cash component of $240–260 million and scrip (share-based) consideration worth $100–120 million, plus anticipated synergies of at least $40 million annually. BlueBet believes over 20% of PointsBet shareholders prefer a scrip-included offer to an all-cash deal.
BlueBet chairman Matt Tripp and CEO Andrew Menz highlighted the strategic benefits of their offer, which would bring increased scale, access to key technology, and marketing contracts. BlueBet secured funding commitments and expects to complete due diligence within 20 business days.
Recently, BlueBet agreed to acquire assets of TopSport, an Australia-facing sports betting company, for an initial AU$10 million with potential future payments based on performance milestones.
PointsBet CEO Highlights MIXI Deal’s Value
During the February 25 earnings call, CEO Sam Swanell stated the board views the MIXI proposal as a compelling opportunity for shareholders to realize immediate, certain cash value at a premium to recent trading prices and attractive FY25 EBITDA metrics.
Company Background and Recent Performance
PointsBet previously denied reports of a potential $300 million sale to an overseas party late last year. The company also faced takeover speculation involving Betr, an Australian sportsbook operator acquired by BlueBet in April 2024.
Stake.com founders Ed Craven and Bijan Tehrani hold over 5% of PointsBet shares.
For the six months ending December 31, 2024, PointsBet reported a 5.8% revenue increase to $124 million across Australia and Canada. Sports betting revenue rose 4.7% to $112.6 million, while Canadian igaming grew 18% to $11.8 million. Despite a 21.8% decline in sports betting handle in Australia, revenue increased 4.4% to $106.2 million due to improved gross win margin. Canadian revenue grew 14.5% to $18.2 million.
Group gross profit improved 11.1% to $65 million, operating costs fell 3.9%, and pre-tax losses halved to $17.2 million. Foreign exchange losses of $165,000 contributed to an overall H1 loss of $17.4 million, improved from $37 million the prior year.
PointsBet’s Exit from the US Market
Until last year, PointsBet operated in multiple US states. In May 2023, Fanatics Betting and Gaming agreed to acquire PointsBet’s US division for $150 million. Following a competing higher bid by DraftKings at $195 million, PointsBet negotiated a final sale price of $225 million. Fanatics completed the acquisition after launching in New Jersey in May 2024.