Australian app developer Activistic has recently announced its Bid Implementation Agreement (BIA) to acquire Plus Connect. The proposed acquisition will feature an off market takeover for Activistic. The Plus Connect acquisition will enable the charity app developer to manage the non-profit fundraising activities of the most widely accepted charity-based lotteries.
Activistic aims to boost its presence in Australia by reaching out to a young demographic. Plus Connect is commercialising social gaming products and online betting apps for millennials.
The group projects a socially responsible wagering model. It beneficiaries include sporting organisations and partner charities. Activistic knows that Plus Connect’s offerings will make them achieve profitable impact and increased PR.
Sports Lottery Product in the Pipeline
Since its regulatory approval in 2014, Plus Connect has focused on cost consolidation and forging business partnerships. Its business development model paid off when it launched its first charity product called the Weather Lottery. Weather Lottery is an online wagering product which operates under its northern territory licence.
Activistic and Plus Connect are set to launch a sports lottery product. Collaboration is key for these substantial developments. Its sports lottery product will work with sporting organisations and clubs. This will enable the group to offer bets under a Norfolk Island licence.
Activistic’s sports lottery product will include fixed odds bet on the outcome. The payment of 25 cents/$1 to the sporting club is enhanced by promoting customer engagement. The product set to be launched in Q4 this year.
What the Acquisition Means for Investors
The acquisition date has yet to be announced. It’s best practice to find professional financial advice is you are planning to acquire stocks after the slated acquisition. Acquisition under the BIA will see 180 million ACU shares that equates to 3.07 ACU’s shares for each Plus Connect share.
Activistic has agreed to issue 12.5 million shares to a Plus Connect creditor in satisfaction of a $250,000 debt after the acquisition is completed. The proposal also agreed under the BIA to provide financial support for growth and development of Plus Connect. It will allocate a $500,000 loan to back up its capital and marketing expenditures.
Once the Activision-Plus Connect merger is completed, it’s expected to cover a rising demographic in the lottery scene. Millennials are seen to be the online gambling industry’s new cash cow. It’s about time that the lottery games approach becomes more social and digital.