Good morning. In this M&A extra:

• PointsBet board recommends an improved $225m offer from Fanatics for its US business.

• DraftKings was unable to meet the deadline for a binding offer and says it is no longer pursuing the acquisition.

• In other news, betr confirms $35m fundraise.

You got to know when to hold ‘em.

Fanatics gets the nod

Fanatics has won the bidding battle for PointsBet.

Done, dusted: Overnight, PointsBet issued a statement saying its board now unanimously recommends an improved $225m offer from Fanatics Betting and Gaming for its US betting interests. The offer represents a 50% increase on its prior bid.

• The deal will see FBG pay $175m on initial completion and a further $50m to be paid on a subsequent completion date.

• At the same time, PointsBet said DraftKings missed a deadline of 6pm yesterday, Melbourne time, to come back with a binding offer. It has previously made a bid of $195m.

• DraftKings said in a statement today that it was “no longer pursuing” a deal.

• PointsBet shareholders will vote on the deal on Friday, June 30, at an EGM. 

• The proceeds from the sale will be returned to shareholders with PointsBet saying the first tranche of money could be expected in September.

Let that be an end to it: The PointsBet statement said the new deal from Fanatics is “superior in terms of both pricing and certainty of being able to complete on a timely basis”.

• “Fanatics Betting and Gaming conducted their diligence process and negotiations in a highly professional manner at all times,” said PointsBet chairman Brett Paton.

• “The offer to ‘front end’ the additional consideration is an element which we regarded as a welcome and significant benefit to our shareholders.”

• “Our US team will have a strong future as part of the Fanatics Betting and Gaming group and PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet.”

Recall, Fanatics launched a $150m bid in mid-May. DraftKings subsequently made a non-binding counteroffer on June 19 worth $195m. PointsBet said it would enter into discussions with DraftKings but that it would continue to recommend the Fanatics bid to shareholders.

• Reacting to the news of the DraftKings counter at the time, Fanatics CEO Michael Rubin said DraftKings was simply attempting to “block” his company’s plans.

• “We are skeptical of the DraftKings proposal, which seems like a desperate move to slow down Fanatics and PointsBet from completing a deal.” 

• A report in the New York Post subsequently suggested Fanatics and DraftKings had held informal discussions back in 2021 regarding a potential merger.

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betr fundraise

The OSB micro-betting startup has received a further $35m from investors.

Punch drunk: As was revealed by Earnings+More at the start of this month, the micro-betting startup led by Joey Levy and influencer and part-time boxer Jake Paul has raised $35m in new funding to give it a valuation of $300m.

• The new funding round is led by IA Sports Ventures, Eberg Capital and Fuel Venture Capital. 

• Levy and Paul also invested in the company in the new round via a personal investment and the Anti Fund, respectively.

• Existing investors FinSight Ventures, Florida Funders and Aliya Capital Partners also invested in the round.

• The initial funding round for betr came last August when it raised $50m for a $250m valuation.

Recall, betr is live in Massachusetts and Ohio and the company says it is due to launch in Virginia soon. In its existing states, it is yet to have much by way of impact on market shares.

• The company said it will be unveiling two additional real-money gaming verticals, in the coming months.

• It recently acquired a copy of the code for a sports-betting technology platform from FansUnite in order to progress its OSB plans.

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Calendar

• Jun 30: PointsBet EGM

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