The PA’s A$49.8m RAS Technology Takeover Explained

Key Points

• The PA is offering A$ 1.04 cash per RAS share, which is a whole A$ 49.8 million in the coffers if everything goes to plan.
• Before the bid, analysts reckoned RAS was worth a pretty penny A1.58 to be exact. Not so long after, they put that fair value down to a measly A1.04.
• Founders Gary Crispe and Robert Vilkaitis hold around 34% of RAS shares. What’s the catch? They’re saying yes to the deal, but only if an independent expert gives it the thumbs up.

A Big Premium on a Small Share Price

One Monday in October, a pretty low-key racing data company was going gangbusters in Australia’s stock market. That’s because the PA the outfit behind the UK’s Press Association news agency had agreed to buy RAS Technology Holdings through a fancy court-approved scheme of arrangement. RAS happens to be the owner of Racing and Sports a company founded in 1999 that dishes out racing data, betting knowhow and digital media to the good people who like to bet on horses.

The official word on the RAS scheme is that the price for each share is A1.04 in cash. It’s a whopping 93% above the stock’s closing price of A0.54 on the 16th of the same month and a full 80% above the 90-day average. With a total of 47.89 million shares on the table, that tip of A1.04 translates to a nun diluted equity value of roughly A49.8 million. Take away the A$ 4.2 million in net cash that’s sitting in RAS’ kitty, and the enterprise value drops down to about A45.6 million.

Investors didn’t wait for the fine print to be printed out. RAS shares closed up a whopping 85.19% at A$1.00 in Sydney just a hair’s breadth from the offer price.

A Few Hurdles Still to Clear

While the scheme is pretty smooth sailing, with no due diligence, financing hoops to jump through, or regulatory obstacles to navigate it’s not a done deal yet. An independent expert has to say that the deal is a good idea for shareholders, and the shareholders themselves have to give their two cents or more specifically, their vote. Last but not least, the Federal Court of Australia has to give it the all-clear.

It’s worth noting that the cofounders Gary Crispe and Robert Vilkaitis own about 34% of RAS, with 8,174,481 and 8,094,876 shares, respectively. They’re saying they’ll vote yes but only if an expert comes out in favour and nothing better comes along.

The PA, on the other hand, has got itself some pretty tight protection. RAS agreed to keep quiet and not negotiate with anyone else, the PA gets to match any other potential offers that come along, and there’s a A$0.5 million break fee if the deal falls through.

RAS chairman Andrew Twaits was pretty confident about the price, saying: “The all-cash price of $1.04 per share at a significant premium to what the stock was trading at lately shows just how much the data, technology and media assets that Racing and Sports has built over the past 20+ years are valued at.”

Three Years of Preparing for Australia

This acquisition takes an evident path laid by The PA since 2023. In October of that year, the parent firm acquired iRace Media, a Singapore-based firm specialising in Asian racing data. Exactly one year later, PA Betting Services was rebranded as Podium, whose clients include Flutter, Entain and Evoke.

RAS can now offer Podium the only market unavailable through iRace – Australia. The PA intends to combine Podium’s sports API with RAS’s trading services and Wagering 360 platform. Bookmakers, broadcasters, and rights holders are set to be the targeted buyers.

The acquisition was seen by Emily Shelley, CEO of The PA, through the lens of speed. “Combined with The PA’s trusted heritage and Podium’s technology, this will enable us to develop new products faster and support the long-term growth of racing and the wider sports industry,” she stated.

“Probably the most exciting thing about the opportunity is how naturally the two businesses complement each other”, says the managing director of Podium Josh Sparke. The two firms will operate independently until the deal closes.

How Racing and Sports Contributes to The Business?

The business being bought by The PA grew rapidly last year despite the costs involved. RAS FY2026 results reveal revenue growth of 34% to A28.4 million for the year ending 30 June 2026. Normalised EBITDA grew by 3% to A3.0 million, while annual recurring revenue (ARR) was A23.5million, an 8% increase. Still, RAS registered a normalised net loss after tax of A0.3 million due to the high expenses in trading and Asia.

ARR ended the fiscal year lower than half-yearly thanks to the end of the lower-margin Stake contract. However, RAS believes that LeoVegas, launched in May 2026 after the UK tender, will provide a greater net margin than Stake at full value.

It should be noted that RAS’s international footprint had started expanding even before the acquisition became known. As per the half-year results presentation of RAS, the UK share of ARR has increased from 31% to 42% over 2024-2025. During the same period, Asia grew from 5% to 13%, and Australia dropped from 54% to 34%. A racing database containing over 5.5 billion data elements was mentioned in the same slides.

Two More Numbers

While a 93% premium does make an impressive headline, there are two other numbers which tell a slightly different story. iGaming Business reported that RAS’ offer is still well under its float price of A$1.50 seen in November 2021. Without dividends or costs being taken into account, the deal represents about a 30.7% discount to the float price.

Consensus estimates were adjusted in the same direction too. In June 2026, the consensus narrative for Simply Wall St valued RAS at A1.58 per share. On 20 October, the estimates were revised down to A1.04 – precisely in line with the scheme price and with lower growth and margins expectations.

The Timeline

The coming months will show if the majority of shareholders accept the directors’ view of the company. Scheme booklets with independent experts’ report should be released in early December 2026. A court-managed meeting of shareholders is scheduled for late January 2027 with implementation taking place in February. As RAS pointed out, those dates are indicative and subject to change.

Expert Review: The Fair Exit or the Discount Wrapped Up in the Premium?

In our view, the 93% premium is much more of a compliment to The PA rather than a compensation for long-standing RAS shareholders. This number is calculated against the share price that had dropped to A$0.54. Compared to the 2021 float price and consensus estimate from June, the offer looks quite modest.

We also believe that the board’s arguments in favour of the deal are genuine, not marketing-speak. RAS had recorded the normalised net loss, its cash reserves had dropped from A5.7milliontoA4.2 million and Stake has gone. Cash in the bank eliminates years of execution risks and many shareholders will be happy to sell it.

Our question is the issue of independence which seems to have been neglected by many reports. RAS described itself as “the leading independent provider” in August. Among its customers are Entain, Flutter and Bet365 and Podium already counts Entain and Flutter as its customers. Once the deal closes, operators will purchase the racing data from a single owner rather than two. With no ACCC conditions involved, we think that the customers deserve an answer on what will happen with pricing and choice afterwards.