BlueBet Holdings has entered into a binding asset sale agreement to acquire certain assets of Merlehan Booking, trading as TopSport.
To support the acquisition, BlueBet is undertaking an institutional placement to raise gross proceeds of approximately AU$15m by issuing roughly 44.1m new shares.
The proposed transaction is structured as an asset sale, with BlueBet only acquiring key assets from TopSport, including TopSport’s customer database, brand and intellectual property, material contracts valued by BlueBet and selected employees.
The transaction is expected to complete in April. On completion, Tristan Merlehan, TopSport’s CEO, will join BlueBet’s executive team as chief trading officer.
“The acquisition of TopSport materially enhances BlueBet’s profitability and scale, is highly accretive for our shareholders and brings us closer to our strategic target of 10%+ market share in Australia,” said BlueBet CEO, Andrew Menz.
“Inorganic growth remains a key opportunity for BlueBet and we have a laser focus and a repeatable M&A model to drive shareholder value by further consolidating the Australian wagering market.
“This transaction is a blueprint for further M&A and delivers a high conversion of Net Gaming Revenue to EBITDA as we leverage our previous investment in our proprietary technology, brand and best-in-class management team.
“Tristan Merlehan is one of this country’s most-respected bookmakers and will further strengthen our market-leading risk and trading capability, driving margin improvement and sustainable profitability for shareholders.”
