BlueBet Holdings has announced an agreement to acquire the assets of Australian sports betting operator TopSport, a move that will expand its market influence and enhance operational scale.
The transaction is conducted in the form of an asset sale, with BlueBet taking over TopSport's customer database, brand, intellectual property, key contracts, and some employees, while excluding other assets and liabilities.
The deal includes a $10 million upfront payment, 70% in cash and 30% in stock, along with deferred earnings payments linked to the net gambling revenue of TopSport customers over the next three years. The agreement also involves performance-based options and potential bonus payments. Regulatory approval from the Northern Territory Racing Commission and the Greyhound Welfare & Integrity Commission is required, with completion expected by April 2025.
To support this acquisition, BlueBet has initiated a $15 million institutional placement, issuing approximately 44.1 million new shares at a price of $0.34 per share.
The placement represents 7.8% of the company's existing capital and will cover the cash portion of the purchase price, integration costs, and future growth plans.
BlueBet CEO Andrew Menz stated, "The acquisition of TopSport significantly enhances BlueBet's profitability and scale, offering substantial added value to our shareholders and bringing us closer to our strategic goal of achieving over 10% market share in Australia."
Worth noting: TopSport, founded by Tristan and Lloyd Merlehan, reported a turnover of $198.9 million in the first half of 2025, with a net profit of $11.8 million and a net profit margin of 5.9%. Its sports-focused customer base is expected to bring additional revenue synergies to the BlueBet platform
TopSport CEO Tristan Merlehan commented, "We conducted a thorough process to find the best partner for TopSport, and BlueBet is undoubtedly the best choice. BlueBet's recent and long-term record in successfully achieving customer migration and expanding the betting business is unmatched in the market, and I am excited to play a key role in expanding our share of the Australian betting market, contributing to BlueBet's bright future."
This acquisition follows BlueBet's 2024 acquisition of Betr, as part of its broader strategy to enhance operational efficiency and market integration. The company also reported that it achieved EBITDA profitability in the first half of the fiscal year 2025, driven by cost synergies and transaction performance.
Following regulatory approval, the transaction is expected to further strengthen BlueBet's position in the Australian betting market, with Merlehan joining the BlueBet executive team as Chief Trading Officer upon completion.
