The Betmakers Technology Group Ltd (ASX: BET) share price is up around 15%. It has announced a partnership with Matt Tripp.
Betmakers is currently engaged with a number of parties to leverage the company's technology and data platform and is looking forward to his assistance with those initiatives. The company is looking at potential opportunities in the US.
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What is happening with Betmakers?
Betmakers Technology has contracted Mr Tripp to be a strategic advisor to the company where he will pursue 'strategic deals' and 'transformational deals' for Betmakers. Mr Tripp will be looking for opportunities in both Australia and internationally.
In per-share terms, strategic deals will be counted as ones that increase the company's revenue by more than 10% on a pro forma basis and transformational deals will be counted as ones that increase revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) by more than 100% on pro forma basis. Mr Tripp will be rewarded with unquoted performance rights if he's successful at bringing in strategic deals, as well as unquoted options and performance rights for transformational deals.
Mr Tripp has agreed to provide business to business wagering service opportunities exclusively to Betmakers.
The execution of any deals will ultimately be up to the board.
Strategic placement
Subject to shareholder approval, Mr Tripp will also invest $25 million at a Bookmakers share price of $0.70 – almost 30% lower than the current price, though Betmakers said it was a 1.6% discount to the 15-day average share price.
Betmakers has also received firm commitments of $50 million from several existing, supportive institutions.
All of these funds will be used to accelerate growth, specifically for pursuing and executing strategic opportunities. After competing the capital raising and the transaction with Sportech, the company will have approximately $110 million in cash on hand.
Matt Tripp's positive comments
Mr Tripp said:
BetMakers has cemented itself with a compelling proposition in the global racing wagering market. They have built a formidable team with a highly trusted brand and established a global footprint with a large customer base. I am delighted to invest into the company and take on a role to assist in growing the business at scale globally. I see clear opportunities to support that growth through inorganic and organic deals both in Australia and internationally.
CEO signs on for another 3 years
Betmakers also announced that the CEO, Todd Buckingham, will remain as the CEO until 30 June 2024 after signing a new 3-year commitment.
The chair of Betmakers, Nick Chan, spoke of the positive contribution that Mr Buckingham has had for the company:
Todd has delivered outstanding growth and opportunity for the company through his leadership and vision and the board is delighted to have secured his commitment under agreeable terms going forward.
