• Establishes wholly owned subsidiary, Racing and Sports Asia, in Hong Kong
• Acquires six leading Hong Kong-based racing data and editorial publications for HKD$20.0 million
• Acquisition expected to be earnings accretive within the first year with considerable future growth opportunities

RAS Technology Holdings Limited (ASX: RTH) has announced that its wholly owned subsidiary, Racing and Sports Asia Limited ('RASA'), has acquired six leading Hong Kong-based racing data and editorial publications. This strategic acquisition provides RAS with a significant presence in Hong Kong, one of the world's largest wagering markets, and is expected to drive substantial growth opportunities for RAS in Hong Kong and Asia more broadly. The acquisition will be funded through the Company's existing cash reserves and is expected to be earnings accretive within the first year, with the acquired assets delivering revenues of $A3.60 million and a profit of $A404,000 in FY24. RAS plans to invest a further $A500,000 in capital across 2025 to uplift the products and systems of the acquired brands, which is expected to support significant cost efficiencies and underpin strong revenue growth. The acquisition establishes a strong foothold in Hong Kong and will diversify RAS' revenue while providing major growth opportunities in Hong Kong and Asia. RAS will leverage its existing operations to expand further in Hong Kong and the region, with RASA obtaining an office in Hong Kong and continuing to employ a local team to operate, maintain, and grow the business.

The acquisition is expected to be earnings accretive within the first year, with substantial revenue and profit growth anticipated in the short to medium term. The assets being acquired delivered revenues of $A3.60 million in FY24, with a profit of $A404,000.

RAS plans to maximise the value of the acquired assets through a range of strategies, including streamlining operations and enhancing all products under the Racing and Sports Asia umbrella. The acquisition is expected to deliver significant expense synergies through increased automation and capitalising on existing data and technology assets, which combined with strong growth strategies, is expected to support significant cost efficiencies and underpin strong revenue growth in the business going forward.