Australian gaming giant Tabcorp Holdings has set out to acquire BetMakers Technology Group, a business that delivers cutting-edge technology to optimize betting, trading, and racing operations. Tabcorp has been eyeing this acquisition for a while, with talks starting in 2025.
Existing Shareholders Will Get to Turn a Portion of Their Stock into Tabcorp Shares
According to the announcement, Tabcorp has put forward AUD 267 million ($188.4 million) for the acquisition of BetMakers. The deal was confirmed in an Australian Securities Exchange (ASX) filing and will see Tabcorp purchase all outstanding BetMakers shares for AUD 0.24 ($0.17) apiece. Existing BetMakers shareholders will be allowed to receive up to 25% of their stake in Tabcorp shares.
This price represents a premium to BetMakers’ recent trading. For reference, the company’s shares were worth AUD 0.16 ($0.11) prior to the deal’s announcement.
The acquisition will be funded by a combination of cash and debt, Tabcorp said.
Tabcorp Has Been Eyeing BetMakers for a While
Under the arrangement, BetMakers’ wagering technology platforms and B2B services will be integrated into Tabcorp’s broader betting and media business. This move is expected to modernize the latter company’s tech stack.
At the same time, Tabcorp projects cost synergies of up to AUD 30 million by the end of the second year after the acquisition. Additionally, the deal is expected to be earnings-per-share accretive from the second year after completion onward.
For reference, Tabcorp eyed the BetMakers acquisition in 2025, but did not proceed with it. Now, the acquisition is becoming a reality, heralding a new chapter for both companies.
In any case, the acquisition is still subject to customary conditions and regulatory approvals.
Company Leaders Celebrated the Deal
Company leaders addressed the M&A move, with Gillion McLachlan, Tabcorp’s CEO, saying that the agreement will accelerate Tabcorp’s strategy across multiple areas. He hailed BetMakers as a company that has undergone a major transformation and is now a robust wagering tech business led by a talented team.
Accessing those advantages will uplift our own tech capability and fast track our product ambitions.
Gillon McLachlan, CEO, Tabcorp
BetMakers’ CEO, Jake Henson, was similarly pleased with the arrangement. Having spent some time with the Tabcorp team, he became convinced that the companies share the same values and the common goal of building a “market-leading 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.
Jake Henson, CEO, BetMakers
Earlier this year, Tabcorp onboarded former AUSTRAC CEO Paul Jevtovic, tasking him to rebuild investor confidence in the business.