Warning: Undefined array key "post_type_share_twitter_account" in /var/www/vhosts/casinonewsblogger.com/public_html/wp-content/themes/cryptocurrency/vslmd/share/share.php on line 24
Australian racing and wagering company Tabcorp will acquire B2B gaming technology provider BetMakers Technology Group for AU$267 million (US$189 million) under a Scheme of Arrangement announced Monday.
Under the proposed transaction, Tabcorp will acquire all issued shares in BetMakers for AU$0.24 per share in cash. BetMakers shareholders will also have the option to receive part of their consideration in newly issued Tabcorp shares instead of cash, subject to a cap of 25% of the total transaction value.
The new Tabcorp shares will be issued at AU$1.00 each, with up to 70.7 million shares to be issued under the arrangement. This represents approximately 3.1% of Tabcorp’s shares currently on issue.
Tabcorp said the AU$0.24 cash consideration values BetMakers at approximately AU$283 million (US$200 million) on a fully diluted equity basis, while the transaction represents an enterprise value of approximately AU$267 million.
Completion remains subject to approval from BetMakers shareholders and the court, clearance from the Australian Competition and Consumer Commission, consent from gaming and racing authorities, and other customary conditions.
Tabcorp said the acquisition will support its strategy by modernising its wagering technology infrastructure and building on BetMakers’ technology transformation over the past two years.
The deal is also expected to increase the scale, diversification and growth potential of Tabcorp’s international business, while adding technology and digital transformation capabilities to support a more efficient operating model.
Tabcorp is targeting AU$30 million in annualised cost synergies by the end of the second year of ownership. The company expects the acquisition to be earnings per share accretive from the second year and deliver double-digit EPS accretion from the third year.
“The acquisition of BetMakers will accelerate our strategy across multiple areas,” said Tabcorp Managing Director and CEO, Gillon McLachlan.
He said BetMakers had undergone significant transformation over the past two years, strengthening its wagering technology and team. ”Accessing those advantages will uplift our own tech capability and fast-track our product ambitions, particularly for our unique media and tote offering,” the CEO stated.
McLachlan added that combining BetMakers’ operations with Tabcorp’s rights, content and customer relationships would create a differentiated offering, support growth and generate 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,” he said.
BetMakers CEO Jake Henson said the companies shared a goal of building a global wagering and media business. “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,” Henson stated.
BetMakers marks Tabcorp’s first acquisition under former AFL Chief Executive McLachlan, as the company seeks to modernise its wagering technology and expand its global tote operations, as per The Australian Financial Review.
Tabcorp has been pursuing the deal since at least October, with Barrenjoey Capital Partners appointed to advise on the transaction, which was internally referred to as Project Wattle.
The acquisition comes as more regional and independent pub operators consider leaving Tabcorp after the company raised weekly fees and reduced commissions, prompting some venues to remove its electronic betting terminals.
Tabcorp reported a 1% year-on-year increase in revenue to AU$1.35 billion ($953.8 million) in its February half-year results. Earnings before interest, tax and amortisation rose 14.3% to AU$217.4 million.