Australian wagering operator Tabcorp Holdings has agreed to acquire wagering technology provider BetMakers Technology Group in a deal valued at approximately AU$267 million (US$189 million). The companies announced the transaction through a Scheme of Arrangement, under which Tabcorp will purchase all issued shares in BetMakers.
The agreement values BetMakers at approximately AU$283 million (US$200 million) on a fully diluted equity basis. Tabcorp will offer shareholders AU$0.24 per BetMakers share, with investors able to choose to receive part of their consideration in newly issued Tabcorp shares. The share component will be limited to a maximum of 25% of the total transaction value, with the new Tabcorp shares priced at AU$1.00 each.
The maximum number of Tabcorp shares that could be issued under the arrangement is 70.7 million, representing about 3.1% of Tabcorp’s existing issued shares.
The transaction remains dependent on several approvals, including BetMakers shareholder approval, court approval, Australian Competition and Consumer Commission clearance, and consent from relevant gaming and racing authorities. Completion is expected in the third quarter of Tabcorp’s 2027 financial year.
Deal Aims To Expand Technology Capabilities
Tabcorp said the acquisition will support its strategy by strengthening its wagering technology infrastructure and adding BetMakers’ experience in digital transformation. The operator expects the combination to improve its technology capabilities, increase scale within its international business, and support the development of future products.
The company is targeting AU$30 million (US$21.2 million) in annual cost synergies by the end of the second year following completion. Tabcorp expects the acquisition to become earnings-per-share accretive from the second year, with double-digit EPS growth impact expected from the third year.
Tabcorp Managing Director and CEO Gillon McLachlan said the deal would help advance several areas of the company’s strategy.
“BetMakers has undergone a significant transformation over the past two years and built impressive wagering technology and a talented team. Accessing those advantages will uplift our own tech capability and fast track our product ambitions, particularly for our unique media and tote offering.”
McLachlan added that combining BetMakers’ technology with Tabcorp’s existing rights, content and customer relationships would create additional opportunities for growth.
“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.”
BetMakers Technology Adds B2B Expertise
BetMakers provides wagering technology, data solutions and B2B services to customers in international markets. The company has undergone significant changes in recent years as it expanded its technology platform and focused on global wagering services.
As Inside Asian Gaming reports, BetMakers CEO Jake Henson said the companies shared similar objectives for developing a larger wagering and media business.
“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. 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 follows earlier discussions between the two companies. BetMakers confirmed in February that Tabcorp had approached the company regarding a possible takeover, although those informal talks ended without a formal offer at that stage.
The companies have also been linked through a previous proposed transaction. In 2021, BetMakers submitted a proposal to acquire Tabcorp’s wagering and media business for AU$4 billion (US$2.83 billion at current exchange rates). That proposal was later withdrawn after Tabcorp decided to separate its lotteries and keno operations.
The BetMakers board has unanimously recommended the latest offer, subject to there being no superior proposal and an independent expert determining that the deal is in shareholders’ best interests.