Tabcorp has agreed to a $267 million deal to purchase wagering technology business Betmakers, in a deal announced to the Australian Stock Exchange on Monday.
In the ASX announcement, it was revealed Tabcorp will offer $0.24 a share, in a deal that still requires shareholder and regulator approval.
Betmakers is a significant shareholder and long-term supporter of Betsy.
Betmakers currently works with some of the world’s biggest bookmakers, providing leading wagering services and serves as the technology provider for a number of the sport’s biggest bookmakers and tote operators.
Tabcorp says the deal will accelerate its modernisation by leveraging BetMakers’ technology transformation over the past two years, while also strengthening its international B2B operations.
Tabcorp is targeting $30 million in annual cost synergies by the end of the second year of ownership, with further upside expected from revenue growth opportunities.
It follows the recent major announcement that Tabcorp had signed all major racing codes to a new National Tote.
Tabcorp CEO Gillon McLachlan said by combining Tabcorp and the ‘’BetMakers’ business with our rights, content and customer relationships creates a differentiated offering’’
“The acquisition of BetMakers will accelerate our strategy across multiple areas,’’ he said on Monday.
‘’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.
‘’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.”
“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,’’ Henson said on Moday.
‘’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.’’
Racing Victoria CEO Aaron Morrison praised the deal on Monday.
‘’My first reaction is that it’s a smart strategic move. BetMakers has built genuine capability in international tote operations, technology and distribution,’’ he said.
‘’If those strengths can be brought into the TAB ecosystem, it should support innovation, improve the customer offering and strengthen the long-term competitiveness of the tote. More liquidity, more international connectivity and better technology are generally good outcomes for the industry.
“We may even see a day that we can accommodate emergencies in the Melbourne Cup!”
