BlueBet announces transformational merger with betr

(PRESS RELEASE) -- BlueBet Holdings Ltd is pleased to announce it has entered into a binding Asset Sale Agreement to acquire NTD Pty Ltd’s wagering business, which will deliver to BlueBet increased scale and market share, significant operational synergies and a platform for further growth. Completion of the Proposed Merger is subject to a number of conditions precedent.

In addition, BlueBet is undertaking a fully underwritten two-tranche conditional placement to raise gross proceeds of approximately $20.0 million at $0.21 per share to fund operational and strategic growth initiatives of the Combined Business and one-off synergy realization and transaction costs.

Strategic Rationale
- Significantly enhanced scale and increased market share: betr’s large and high quality customer database comprising c.341k open accounts and c.112k active customers, which, when combined with BlueBet’s loyal base of over 67k active customers, provides significantly enhanced scale and increases the Company’s sustainable base of recreational customers with low customer crossover
- Maximising use of BlueBet’s leading technology platform: ability to migrate betr’s customers to BlueBet’s highly scalable proprietary technology platform developed through significant multi-year investment, driving greater customer engagement, retention and monetization
- Significant operational efficiencies: cost synergies are readily identified and expected to commence immediately upon Completion, with ~$11.0 million of the identified ~$14.0 million of annualized cost synergies expected to be realized in FY25. Additional potential upside (not quantified) expected from optimal engagement of the entire customer base and increasing betr’s Net Win margin towards BlueBet’s. The Combined Business also expects to transition to one single brand following a brand review, with advertising and marketing savings to be reinvested
- Combined Business profitability: Combined Business expects to reach monthly EBITDA profitability in 1H FY25 and be EBITDA profitable in FY25 (including synergies, excluding one-off transaction and synergy realisation costs)
- Highly experienced and knowledgeable Board and Management team: management team to be led by Andrew Menz and Bill Richmond, with the Board to include industry pioneers Michael Sullivan and Matthew Tripp
- Platform for further inorganic growth: the Combined Business will adopt BlueBet’s leading proprietary technology platform to drive further organic and inorganic growth with a focus on accretive M&A

BlueBet’s Executive Chairman, Michael Sullivan, said: “This is a transformational moment for BlueBet, bringing together our best-in-class technology platform with betr’s large and high-quality customer base to create a national challenger in the online wagering market. The betr team is fully aligned with this vision, and we are excited by the growth opportunities and synergies that will be unlocked through the Proposed Merger of our two businesses.”

betr’s Founder, Matthew Tripp, said: “Today is a significant day for betr and a major step
towards achieving our ambition to be a Tier 1 wagering operator. The combination of our joint
scale and the BlueBet technology platform is extremely powerful. What excites me most is the
deep experience and highly-complementary skillsets of the combined team which sets us up well
for the next phase of growt