The PA agrees AU$49.8m takeover of Racing and Sports owner RAS Technology

The PA, the group behind the UK's Press Association, announced on Monday that it had agreed to acquire RAS Technology Holdings, the ASX-listed owner of racing data and wagering technology supplier Racing and Sports. The deal is all cash and worth about AU$49.8m, or around £26m. The PA is offering AU$1.04 per share.

The AU$1.04 per share price is 93% above where RAS closed on 16 October, at AU$0.54. Grafa puts the premium at 80% when measured against the stock's 90-day volume-weighted average price of AU$0.576. Stockhead reported that the shares climbed roughly 85% to AU$1.00 once the announcement was made. Even so, the offer falls short of the AU$1.50 per share float price from RAS's ASX listing in November 2021.

A binding Scheme Implementation Deed sets out the mechanism for the takeover, which takes the form of a scheme of arrangement. Under the plan, The PA would pick up all of RAS's issued shares. The parties are aiming to close in February 2027, though shareholders must vote on the plan and Australia's Federal Court must approve it first.

Directors of RAS have backed the scheme without dissent, provided no better offer emerges and an independent expert's conclusions support it. Gary Crispe and Robert Vilkaitis, the co-founders, intend to cast their votes for the deal; between them they hold or control roughly 34% of the company. According to reports, the deed grants the buyer exclusivity and a matching right, and requires RAS to pay a break fee of about AU$0.5m in specified situations.

A scheme booklet containing the independent expert's report should reach RAS shareholders in early December. Australian media reports indicate that a court-convened meeting has been scheduled for late January.

Within The PA, Racing and Sports would join Podium, the group's arm for racing and sports betting data. According to The PA, pairing Podium's sports API with RAS's trading services and Wagering 360 platform would offer bookmakers, media and rightsholders a more complete product range. The move would additionally take The PA's business into Australian wagering.

Emily Shelley, chief executive of The PA, said customers would gain "a wider range of data, deep wagering knowledge and coverage across more markets". She noted that both companies value trust and integrity, and argued that their complementary strengths and global reach would deliver more of what customers value. In her view, the combined business could "develop new products faster" while supporting racing's long-term growth.

Josh Sparke, managing director of Podium, said he was most excited by "how naturally the two businesses complement each other". Stephen Crispe, who leads Racing and Sports, called the deal "an important step" and said The PA deeply shares the company's commitment to integrity, quality and the accurate, trusted live data needed to power the global racing industry. Until completion, the two businesses will keep operating separately. The PA and RAS have both been approached for further comment.