BlueBet’s shares experienced a sharp increase ahead of the betting company’s merger with Betr. According to a report by the Australian Financial Review, a local news outlet, the deal should be closed soon.
Following the report, BlueBet’s share price spiked to AUD 0.33, vastly increasing the firm’s market cap. The shares proceeded to fall back to AUD 0.30, resulting in a market cap of AUD 60.33 million.
The merger was originally announced at the beginning of 2024. The deal is set to allow Betr to enter the ASX and aligns with the company’s overall strategy. It comes in the wake of discussions between Betr and PointsBet for the acquisition of the latter company’s Australia-facing business.
The negotiations between Betr and PointsBet were eventually called off and the latter company proceeded to instead sell its US business to Fanatics in a multi-million deal. As a result, Betr was forced to look elsewhere.
The merger between Betr and BlueBet came almost a year after the former company employed the services of Barrenjoey, asking the investment firm to help it explore strategic alternatives.
The Merger Will Be a Major Milestone for Betr
According to the Australian Financial Review’s report, Andrew Menz will serve as CEO of the emerging entity.
The merger will allow Betr to tap into the Australian stock market and improve its presence in the region.
For reference, BlueBet is a publicly-listed company that has traded on the ASX since 2021. Last year, the company reported disappointing financial results and vowed to continue working hard toward a positive cash flow.
In other news, Joey Levy, the CEO of Betr, spoke about his company’s strategy, addressing certain recent setbacks, including the withdrawal from Massachusetts. Despite the headwinds, Levy said that he is optimistic about Betr’s overall trajectory.
In early March, Betr also secured $15 million in strategic equity financing and said that it would use the money to accelerate the growth of its business.