BlueBet Holdings Ltd (ASX:BBT) Announces Acquisition of TopSport and Equity Raising
Acquisition of TopSport
BlueBet Holdings Ltd (BlueBet or the Company) has entered into a binding Asset Sale Agreement to acquire key assets of Merlehan Bookmaking Pty Ltd (trading as TopSport). The purchase price includes an upfront payment of $10 million, deferred earn out payments, and the issuance of performance-based options. Completion is expected in April 2025, subject to conditions precedent such as regulatory approvals and customer migration.
Equity Raising
BlueBet is undertaking an institutional placement to raise gross proceeds of approximately $15 million through the issuance of around 44.1 million new shares at an offer price of $0.34 per share. The funds will be used to fund the upfront payment to TopSport, working capital, growth initiatives, and transaction costs.
Financial Performance
In H1 FY25, BlueBet reported a turnover of $198.9 million with 11,300 active customers. The gross win was $14.4 million, and net win was $5.2 million, reflecting a net gaming revenue margin of 5.9%. BlueBet delivered EBITDA positive half ahead of schedule with strong trading performance and synergy gains.
Transaction Highlights
The acquisition is significantly earnings accretive, with over 30% pro-forma EPS accretion expected in FY26 and FY27. It enhances BlueBet’s scale, bringing the company closer to a 10-15% market share in Australia. The integration leverages BlueBet’s technology platform to drive margin advantage and customer engagement.
Q2 FY25 Update
BlueBet achieved EBITDA positive in H1 FY25, driven by accelerated synergy gains and efficient promotions, resulting in an 11% net win margin. Trading momentum continues in Q3 FY25, maintaining strong post-migration performance.
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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