The Press Association (PA), the organization responsible for the UK news agency, announced on Monday its decision to acquire RAS Technology Holdings, which is listed on the ASX and operates as a supplier of racing data and wagering technology through its subsidiary, Racing and Sports.
Emily Shelley, the chief executive of the PA, emphasized the advantages of the acquisition, stating it would provide customers with "a wider range of data, deep wagering knowledge, and coverage across more markets."
She also highlighted the shared values of trust and integrity between PA and Racing and Sports, asserting that their combined strengths would enhance the offerings for their customers.
The acquisition will involve an all-cash transaction valued at approximately AU$49.8 million, equivalent to around £26 million. The Press Association's proposal includes a payment of AU$1.04 per share, marking a 93% premium over RAS's closing price of AU$0.54 as of October 16. Additionally, this offer reflects an 80% premium based on the stock’s average price of AU$0.576 over the last 90 days, according to Grafa. Following the announcement, RAS shares surged nearly 85% to AU$1.00, as reported by Stockhead. However, this share price remains lower than the AU$1.50 per share achieved when RAS debuted on the ASX in November 2021.
The acquisition will proceed through a scheme of arrangement governed by a binding Scheme Implementation Deed, under which the PA will acquire 100% of RAS's issued shares. The deal's completion is expected by February 2027, pending shareholder approval and clearance from Australia’s Federal Court.
The board of RAS has unanimously backed the acquisition proposal, contingent upon an independent expert’s assessment and in the absence of a better offer. Co-founders Gary Crispe and Robert Vilkaitis, holding around 34% of RAS shares, intend to vote in favor of the scheme. The agreement also includes exclusivity clauses and a buyer’s matching right, along with a break fee of approximately AU$0.5 million payable by RAS under certain conditions.
Shareholders of RAS will receive a scheme booklet containing the independent expert’s report by early December, preceding a court-held meeting anticipated for late January, as indicated by Australian media sources.
Racing and Sports will join forces with Podium, the PA’s racing and sports betting data division. Following the acquisition, the PA stated that the synergy between Podium’s sports API and RAS’s trading services, including the Wagering 360 platform, would create an expanded product suite for bookmakers, media, and rights holders. This strategic move will also facilitate the PA's expansion into the Australian wagering sector.
Shelley noted that the integration would enable the development of new products at a faster pace while fostering the long-term growth of racing. Josh Sparke, managing director of Podium, expressed enthusiasm over the natural compatibility of the two businesses.
Stephen Crispe, chief executive of Racing and Sports, described the agreement as a significant milestone, acknowledging the PA's shared commitment to integrity and the delivery of accurate, trusted real-time data crucial for the global racing industry.
Until the completion of the acquisition, both businesses will continue their operations autonomously.
Subsequent to this announcement, further comments were sought from both the PA and RAS.
