BlueBet Holdings (ASX: BBT) has announced the strategic acquisition of TopSport, a move that is expected to be highly accretive for shareholders, with more than 30% EPS accretion projected for FY26 and FY27. The acquisition supports BlueBet’s goal of achieving a 10%-15% market share in Australia, leveraging its proprietary technology and repeatable M&A model.
To fund the acquisition, BlueBet has launched a $15.0 million institutional placement, issuing approximately 44.1 million new shares at $0.34 per share.
Key Benefits of the Acquisition
- Significant EPS Accretion: More than 30% EPS uplift expected in FY26 and FY27.
- Scalability & Market Share Growth: Moves BlueBet closer to its 10%-15% market share target.
- Margin & Engagement Growth: Integration with BlueBet’s personalised promotion engine to drive higher margins.
- Proven M&A Model: Expands on the successful BlueBet-betr combination.
- Enhanced Trading Expertise: TopSport CEO Tristan Merlehan joins BlueBet as Chief Trading Officer.
Transaction Overview
- Asset Purchase: BlueBet acquires TopSport’s customer database, brand, IP, key contracts, and select employees.
- Purchase Price:
- $10 million upfront (70% cash, 30% scrip).
- Deferred earn-out payments based on Net Gaming Revenue over three years.
- Performance-based options and potential bonus payments.
- Regulatory Approvals Required: Northern Territory Racing Commission & Greyhound Welfare and Integrity Commission.
- Expected Completion: April 2025, subject to approvals and customer migration.
TopSport Overview
TopSport is a well-established sports and racing bookmaker run by Tristan and Lloyd Merlehan, with over 50 years of combined experience.
1H FY25 Performance:
- $198.9M turnover
- $11.8M Net Win
- 5.9% Net Win margin
Customer Insights:
- Strong skew towards sports betting.
- Only 33% overlap with BlueBet’s customer base, creating strong cross-sell potential.
Equity Raising Details
- Placement Size: $15.0 million (~44.1M shares).
- Issue Price: $0.34 per share.
- Premiums to Trading Price:
- 3.0% above last traded price of $0.33.
- 0.6% above 5-day VWAP of $0.3379.
- 3.5% above 30-day VWAP of $0.3284.
- Settlement Date: 12 February 2025.
- Allotment & Trading: 13 February 2025.
- Joint Lead Managers & Bookrunners: Ord Minnett & Morgans Corporate.
CEO Comments
Andrew Menz, BlueBet CEO
“This acquisition is a game-changer for BlueBet. It enhances profitability, scales our business, and accelerates our journey to a 10%+ market share. With a proven M&A strategy and a best-in-class team, we are well-positioned for further industry consolidation.”
Tristan Merlehan, TopSport CEO
“BlueBet was the clear choice to take TopSport forward. Our customers will benefit from a vastly enhanced wagering experience while continuing to receive the high-quality service they expect.”
Looking Ahead
With a growing portfolio, an efficient acquisition model, and a strong balance sheet, BlueBet is positioned for long-term market leadership in the Australian wagering industry. The acquisition of TopSport is not just an expansion—it’s a blueprint for future growth.
