BlueBet Holdings (ASX:BBT) Acquires TopSport and Raises $15M Equity
Strategic Acquisition of TopSport
BlueBet Holdings Limited (ASX:BBT) has entered into a binding Asset Sale Agreement to acquire certain assets of Merlehan Booking Pty Ltd (TopSport). The acquisition is expected to significantly enhance profitability, targeting over 30% EPS accretion in FY26 and FY27, and move BlueBet closer to a strategic 10-15% market share in Australia.
Equity Raising
To support the acquisition, BlueBet is undertaking an institutional placement to raise approximately $15.0 million by issuing around 44.1 million new shares. The proceeds will fund the upfront payment to TopSport and support integration, migration costs, working capital, and further growth initiatives. The placement is priced at $0.34 per share, representing a premium over recent trading prices, and is set to settle on 12 February 2025.
Financial Impact
The acquisition leverages BlueBet’s repeatable M&A model, driving industry consolidation and creating shareholder value. TopSport is expected to enhance BlueBet’s margin advantage, share of wallet, and customer engagement through BlueBet’s technology platform, including its personalised promotion engine.
Executive Comments
BlueBet CEO, Andrew Menz, stated, “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. 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.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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