SYDNEY: Tabcorp Holdings Ltd. announced Monday it has entered into a binding agreement to acquire wagering technology provider BetMakers Technology Group for A$0.24 per share, valuing the company at approximately $267 million.
The acquisition, structured as a scheme of arrangement, aims to accelerate the modernization of Tabcorp’s wagering technology stack while establishing a global business-to-business growth engine.
Tabcorp said the deal would deliver significant cost synergies and boost earnings per share by the second year of ownership.
“The acquisition of BetMakers will accelerate our strategy across multiple areas,” Tabcorp Managing Director and CEO Gillon McLachlan said in a statement. “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.”
Under the deal, BetMakers shareholders may elect to receive a portion of their consideration in Tabcorp shares, subject to an aggregate cap of 25% of the total transaction consideration. New Tabcorp shares issued as scrip consideration will be priced at a minimum of A$1.00 per share, a 12% premium to Tabcorp’s last closing price.
The offer represents an enterprise value-to-EBITDA multiple of 6.1 times BetMakers’ pro forma earnings for the 12 months ending June 2026, including full run-rate cost synergies. The offer price implies a premium of approximately 41% to BetMakers’ one-month volume-weighted average price.
Tabcorp said it is targeting A$30 million in annual cost synergies by the end of the second year of ownership, driven by operational efficiencies and technology cost savings. The company expects the transaction to deliver double-digit EPS accretion from the third year.
BetMakers’ board unanimously recommended the offer, with each director intending to vote their shares in favor of the transaction, pending no superior proposal and an independent expert’s conclusion that the deal is in the best interests of shareholders.
“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 CEO Jake Henson said.
The transaction remains subject to approvals from BetMakers shareholders, the Australian Competition and Consumer Commission, gaming and racing authorities in jurisdictions where BetMakers operates, and court approval. The parties are targeting implementation during the third quarter of fiscal 2027.
Tabcorp said the cash component of the consideration would be funded from existing cash and undrawn debt facilities, with pro forma leverage expected to remain well below the company’s target range of less than 2.5 times.
BetMakers, listed on the ASX since 2015, operates two business segments: Global Betting Services, which accounts for approximately 40% of fiscal 2025 revenue, and Global Tote, which accounts for approximately 60%. The company serves racing and wagering operators across Australia, Asia, Europe, the United Kingdom and the Americas.
Tabcorp will host an investor and analyst conference call at 10 a.m. AEST Monday.
