Tabcorp is moving to buy wagering technology provider BetMakers Technology Group in a deal with an enterprise value of about A$267 million ($189 million), which is said to be one of its biggest technology investments as the betting company pushes to modernize its operations and strengthen its international business-to-business offering.
The companies have signed a binding scheme implementation deed under which Australia’s largest gambling firm will acquire all issued BetMakers shares through a scheme of arrangement. The offer values BetMakers at A$0.24 a share, placing the company’s fully diluted equity value at about A$283 million and its enterprise value at roughly A$267 million.
The proposed price represents premiums of about 41%, 42% and 37% over BetMakers’ one-month, three-month and six-month volume-weighted average share prices, respectively, as of August 7.
Tabcorp said bringing BetMakers into the business would help speed its transition to a cloud-based wagering technology platform. The company also expects lower technology costs, reduced capital spending and faster development and rollout of new wagering products.
“The acquisition of BetMakers will accelerate our strategy across multiple areas. BetMakers has undergone a significant transformation over the past two years and built impressive wagering technology and a talented team,” Tabcorp Managing Director & Chief Executive Officer Gillon McLachlan said in a statement. “Accessing those advantages will uplift our own tech capability and fast track our product ambitions, particularly for our unique media and tote offering. Combining BetMakers’ business with our rights, content and customer relationships creates a differentiated offering that will unlock growth and deliver attractive financial returns.
“Tabcorp is midway through its strategic transformation, with strong foundations established, and this acquisition provides us with an excellent opportunity to accelerate our ambitions.”
Tabcorp bets on technology-led transformation with BetMakers takeover
Tabcorp plans to pay the cash component using existing cash reserves and available debt facilities. BetMakers investors can choose to receive part of their consideration in newly issued Tabcorp shares, although stock will account for no more than 25% of the total consideration. The shares will be priced at the greater of A$1.00 each or Tabcorp’s five-day volume-weighted average price before the scheme record date.
The company expects A$30 million in annual pre-tax operating cost savings by the end of its second year of ownership, with efficiencies coming from technology infrastructure, applications, contracts and support functions. Tabcorp also expects the transaction to become earnings per share accretive from the second year, with double-digit EPS accretion from year three.
BetMakers would expand Tabcorp’s international B2B portfolio by adding wagering technology, racing data, media services, tote hosting, commingling and integrity services.
“Having spent time with the Tabcorp team, it is clear we share a common purpose: to build a market-leading global wagering and media business,” BetMakers Chief Executive Officer, Jake Henson said.
“Bringing together Tabcorp’s rights, content and relationships with BetMakers’ platforms, data and B2B wagering services will create a more complete and compelling global offering for our customers, and an exciting future for our people.”
The acquisition comes as Tabcorp faces increased regulatory scrutiny. In July, Australia’s communications regulator fined the company more than A$2.7 million after investigations found widespread telemarketing and spam law breaches involving customers who had opted out of marketing.
Tabcorp has also recently faced regulatory action over gambling compliance issues and has been drawn into wider parliamentary scrutiny of Australia’s wagering industry. BetMakers’ board has unanimously recommended the deal, which remains subject to shareholder, court and regulatory approvals, with completion targeted during the third quarter of fiscal 2027.
Featured image: Tabcorp / Canva
The post Tabcorp agrees $189M BetMakers takeover to accelerate global wagering technology appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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