Fans reach a $150 million agreement to acquire PointsBet's US business.

Following the news that it had conducted a strategic assessment, PointsBet has decided to sell Fanatics its US operations for $150 million.

The approval of shareholders and regulators is still pending for the deal. This isn't anticipated to be an issue, though, as the deal will probably be approved at the shareholder meeting in June.

PointsBet has decided to maintain its operations in Australia and Canada, indicating that it expects these regions to achieve EBITDA break-even.

After the shareholder meeting, PontsBet's US operations will be subject to a $21 million funding cap until the completion of the agreement with Fanatics.

"In view of the US market in which the company has significant operations, the Board has explored and considered a wide range of strategic alternatives over an extended period of time," stated PointsBet Chairman Brett Paton in regards to the deal.

"The board believes that the Fanatics Betting and Gaming proposal maximises value for shareholders, having taken into account all of the options potentially available to the company."

"Despite the strategic success building a valuable asset in the US, the costs of operating in a state-by-state environment, along with the requirement to build significant scale to compete against well-capitalized operators, led us to explore a number of options," stated Sam Swanell, Managing Director and Group CEO of PointsBet.

"As compared to the risks and advantages of other options, including the status quo, the sale of the US Business to Fanatics Betting and Gaming represents the most appealing risk-adjusted value outcome for shareholders.”