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POINTSBET EVERY POINT MATTERS PointsBet Announces Acquisition of Banach Technology - Melbourne , Australia , 16 March 2021 PointsBet Holdings Limited ( ASX : PBH ) ( the " Company " ) is pleased to announce today that its wholly owned Irish subsidiary , Lockspell Limited ( " PointsBet " ) , has entered into a binding share purchase agreement ( " SPA " ) to acquire Banach Technology Limited ( " Banach " ) . The transaction is subject to customary completion conditions and is expected to close in April 2021 . TRANSACTION HIGHLIGHTS PointsBet will acquire Banach for US $ 43m on a cash and debt free basis . The purchase price will be paid 55 % in cash and the remainder in scrip ( being 1,752,875 Company shares , calculated using the 20 - day VWAP immediately prior to the date of the SPA ) . The shares will be issued under the Company's Listing Rule 7.1 placement capacity . • The Company will also provide Banach US $ 4.0m in funding to assist in the conversion process of existing equity options . This amount will be retained by the PointsBet Group post completion of the transaction . • Banach is a Dublin - based provider of proprietary risk management platforms and quantitative driven trading models that support complex pre - game and in - play betting products across numerous sports , including the four major American sports and international soccer . • The Banach team is deeply experienced , particularly in leading pre - game and in - play sports wagering markets , having previously established the Quants division of Paddy Power Plc ( now Flutter Entertainment Plc ) . ACQUISITION OF BANACH TECHNOLOGY 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 ) . Page 1