Tabcorp has agreed to acquire BetMakers Technology Group, adding wagering technology, racing data and tote infrastructure to its business.
Tabcorp Offers AU$0.24 Per Share
Tabcorp will acquire 100% of BetMakers through a scheme of arrangement, offering AU$0.24 per share. The deal values BetMakers at about AU$267 million on an enterprise basis and roughly AU$283 million on a fully diluted equity basis.
The price represents a premium of around 41% to BetMakers’ one-month volume-weighted average share price. BetMakers‘ board has unanimously recommended the proposal, provided no superior offer emerges and an independent expert backs the transaction.
Shareholders can take cash or elect to receive part of their consideration in Tabcorp shares, although shares will be capped at 25% of the total deal value.
Technology Is the Main Attraction
BetMakers supplies wagering operators with betting infrastructure, odds and risk tools, racing content, data, analytics and tote systems.
That fits neatly with Tabcorp‘s push to modernise its wagering technology and reduce its reliance on older platforms. Buying BetMakers also gives Tabcorp a larger B2B operation spanning Australia, Europe, the UK, Asia and the Americas.
For regular TAB customers, there probably will not be an immediate change. Over time, though, owning more of the technology behind its wagering products could help Tabcorp roll out new features faster and improve how racing and tote services are delivered.
Tabcorp Targets AU$30 Million in Savings
Tabcorp expects to generate about AU$30 million in annual cost savings by the end of the second year after completion.
Those savings are expected to come from replacing existing platforms, reducing duplicated technology contracts and cutting overlapping corporate and support costs.
The company expects the transaction to lift earnings per share from the second year of ownership, with double-digit EPS accretion forecast from year three.
BetMakers Once Tried to Buy Tabcorp
There is a nice reversal buried in the deal. Back in 2021, BetMakers submitted a AU$4 billion proposal to acquire Tabcorp’s Wagering and Media business. That deal never happened, and Tabcorp later separated its lotteries operation. Five years on, the roles have flipped.
Deal Still Needs Approval
The acquisition still requires approval from BetMakers shareholders, the courts, competition authorities and relevant gaming and racing regulators.
Tabcorp and BetMakers are targeting completion during the third quarter of Tabcorp’s 2027 financial year.
If approved, the deal will give Tabcorp greater control over the technology behind its wagering business while adding a B2B platform it can sell to operators and racing partners outside Australia.
