Racing and Sports set to be acquired by UK-based Press Association for $50 million

The Press Association has agreed to buy Racing and Sports Technology, the ASX-listed parent company of racing data and content firm Racing and Sports, in a deal valuing the Canberra-based company at $49.8 million.

Under the proposal, RAS shareholders would receive $1.04 per share, a 93 per cent premium to the company’s October 16 closing price of 54 cents and 80 per cent above its average share price.

The enterprise value is about $45.6 million with $4.2 million in net cash added to the mix.

The RAS board has given unanimous backing to the scheme, provided no superior proposal emerges and an independent expert finds it to be in shareholders’ best interests.

Co-founders Gary Crispe and Robert Vilkaitis, who control 34 per cent of the company, have confirmed in writing that they intend to support the scheme on the same terms.

“The all-cash price of $1.04 per share, at a significant premium to recent trading prices, recognises the value of the data, technology and media assets Racing and Sports has built since 1999,” RAS chair Andrew Twaits said.

The scheme still needs shareholder and Federal Court of Australia approval, along with a favourable independent expert’s report.

The Press Association plans to fund the purchase from existing cash and committed debt financing.

A shareholder meeting is expected in late January, while implementation is targeted for February 2027.

PA has indicated it will combine Racing and Sports with Podium, its existing sports data business, and expand its Australian betting and wagering operations.

Podium provides coverage of horse and greyhound racing, live data and form guides to more than 300 brands from offices in the UK and Singapore.

Podium previously purchased Singapore-based iRace media in 2023.

The PA chief executive Emily Shelley said the combined business would offer customers “a wider range of data, deep wagering knowledge and coverage across more markets”.

Racing and Sports is now run by chief executive Stephen Crispe, Gary Crispe’s son, and also operates from the UK, Hong Kong and Singapore.

Under RAS Technology, it listed on the ASX in December 2021 after a $29 million initial public offering.

RAS posted revenue of $28.4 million for the year to June 30, up 34 per cent. Normalised EBITDA rose three per cent to $3 million, although the company swung to a $300,000 normalised after-tax loss from a $1.1 million profit a year earlier.

RAS attributed the change to investment in trading capability, product development, and its Asian business.

Annualised recurring revenue was $23.5 million at June 30, up 8 per cent year-on-year.