BetMakers Technology Group, the race betting operator and technology provider from Australia, has entered the race to buy Tabcorp’s media and wagering division with an offer of 4 billion Australian dollars.
The proposal consists of 1 billion dollars in cash, which BetMakers would acquire through debt financing, and a further 3 billion dollars in BetMakers shares, including a 15% premium to the traded price prior to signing.
If the deal goes through under these terms, then the Tabcorp shareholders would end up with a combined stake of 65% in BetMakers. However, the share price has dropped 10% after the announcement of the proposal, so BetMakers might need to offer more shares to close the deal.
Executives revealed that their intention is to create a powerful global wagering platform, which would be active both in the business-to-business market and the business-to-consumer market. The new entity that would be created if the deal goes through would also benefit from world-class technology which would result from the combination of the two companies’ forces.
Moreover, BetMakers, which recently saw a revenue increase, insisted that the combined business would be able to access new revenue streams in the United States, while retaining a solid base in Australia. In fact, the Australian ownership structure of the company would not change, and the resulting business would continue to provide support to the country’s racing industry.