Banach Technology, the Irish gambling software developer, has been bought by Australian betting company PointsBet for $43m.

The transaction will be made up of 55% cash, with the remainder coming in shares.

Based in Dublin Banach Banach was founded by Rob Reck, Mark Hughes, Alex Zevenbergen and Hadrien Lepretre.

All four men played a leading role in establishing the Quants department at Paddy Power. 

Banach currently employs around 40 technology and product staff who develop risk management platforms and quantitative driven trading models for pre-game and in-play online betting products across numerous sports.

PointsBet said the acquisition will position it as a leader of in-play sports wagering in the US, just as in-play wagering is expected to grow there exponentially.

"I am extremely proud of the business and team we have built over the last few years," said Mark Hughes, Banach CEO.

"We could not be more excited about the burgeoning US opportunity and the role that the Banach team will play in accelerating and strengthening PointsBet's pre-game, in-play and free-to-play offering in the United States."

PointsBet also said Banach technology would allow it to optimise achieved margin and value to its customers.

"We are delighted with the acquisition of Banach and that its well credentialed team have agreed to join PointsBet," said PointsBet’s Group CEO and Managing Director Sam Swanell.

"As legalisation to approve US sport betting accelerates across the US, it has become clear that the in-play opportunity will be very significant and those with the best depth and breadth of product will win."

Under the terms of the deal, Mark Hughes will become PointsBet Chief Operating Officer, while the other founders will take on senior positions in the parent company. 

Banach will continue to honour contracts it has with some of the world’s best known sports betting companies.