On Monday, the Press Association (PA), the organization behind the UK news agency, announced a significant move to acquire RAS Technology Holdings. RAS Technology, which is listed on the ASX, is known for its racing data and wagering technology through its subsidiary, Racing and Sports.
Emily Shelley, chief executive of the PA, expressed her enthusiasm for the acquisition, emphasizing that it would enhance the offerings available to customers by providing a wider array of data, deeper wagering insights, and broader market coverage.
Shelley remarked, "The PA and Racing and Sports share a commitment to trust and integrity. The businesses’ complementary strengths and global reach will offer customers more of what they value."
The transaction is an all-cash deal valued at approximately AU$49.8 million (around £26 million). The Press Association is proposing AU$1.04 per share, representing a 93% premium over RAS's closing price of AU$0.54 on October 16. Additionally, this offer is an 80% premium compared to the stock's average price of AU$0.576 over the last 90 days, as reported by Grafa.
Following the announcement, shares of RAS surged about 85% to AU$1.00, according to Stockhead. However, it remains below the AU$1.50 per share price at which RAS initially floated on the ASX in November 2021.
The acquisition process will involve a scheme of arrangement outlined under a binding Scheme Implementation Deed, where the PA will acquire 100% of RAS's issued shares. Completion of the deal is expected by February 2027, pending approval from RAS shareholders and the Federal Court of Australia.
The board of RAS has unanimously endorsed the scheme, contingent on an independent expert's assessment and the absence of any superior offers. Co-founders Gary Crispe and Robert Vilkaitis, who control around 34% of RAS shares, plan to support the offer. The agreement includes certain exclusivity provisions and a matching right for the buyer, along with a break fee of AU$0.5 million payable by RAS under specific conditions.
RAS shareholders can expect to receive a scheme booklet detailing the proposal and the expert's report in early December, ahead of a court-organized meeting set for late January, as reported by local media.
With this acquisition, Racing and Sports will join Podium, the PA's racing and sports betting data division. The PA stated that the integration of Podium’s sports API with RAS’s trading services and Wagering 360 platform will present bookmakers, media, and rightsholders with a comprehensive product suite, while also enabling the PA to expand its footprint in the Australian wagering market.
Shelley noted that this merger will accelerate the development of new products and bolster long-term growth for the racing sector. Podium managing director Josh Sparke shared his excitement about the synergies between the two organizations, highlighting how well they complement each other.
Stephen Crispe, chief executive of Racing and Sports, called the agreement “an important step.” He added, "The PA deeply shares our commitment to integrity, quality, and the importance of accurate, trusted live data that is needed to power the global racing industry."
Until the deal is finalized, both the PA and RAS will continue to operate independently. The PA and RAS have been contacted for any further comments on the transaction.
