SIG Sports, an affiliate of investment giant Susquehanna International Group, has purchased a 12.76 percent stake in PointsBet for $65 million, becoming the Australian sports betting company’s biggest individual shareholder.
According to filings with the Australian Securities Exchange, SIG will acquire 38.75 million shares at a rate of $1.68 per share, which is an increase of over 10 percent from its June 17 closing price.
As part of the deal, SIG-owned data firm Nellie Analytics will provide tech and analytics services for PointsBet, the companies announced.
Jeff Yass, managing director for SIG, said in a statement that a sports betting investment had been in the works “for some time,” and that PointsBet specifically “has great potential for growth in the North American sports betting market.”
Despite the fact that the company is Australian-based, PointsBet has aggressively pursued new markets in both the U.S. and Canada, and will likely use the new capital to continue doing so. According to industry experts, PointsBet currently controls nearly 4 percent of the North American market, which is almost halfway to its stated goal of 10 percent.
According to filings, PointsBet will maintain its existing board and no changes are expected as a result of the deal.
While most sportsbooks outsource the majority of data services, SIG and PointsBet are hoping that the ability to keep their tech in-house via their partnership with Nellie will benefit everyone long-term. Nellie will provide full services to PointsBet for nine months, with tentative plans to eventually establish a permanent partnership.
