Tabcorp (ASX: TAH) is set to embark on a comprehensive upgrade of its betting technology following its decision to procure Australian B2B provider BetMakers Technology (ASX: BET) for approximately AU$283 million (around $200 million).
According to the agreement, Tabcorp will buy all shares of BetMakers for AU$0.24 ($0.17) in cash. Shareholders of BetMakers will have the option to receive part of the payment in Tabcorp shares.
At the close of trading on Friday (Aug 7), BetMakers shares were valued at AU$0.17 ($0.12), which reflects a 41% premium.
The board of BetMakers has unanimously recommended shareholders to support the transaction. Both companies are aiming to finalize the acquisition by Q3 2027, subject to shareholder and regulatory approval.
Following the acquisition announcement, Tabcorp’s shares rose by nearly 3% in trading.
After the announcement, Gillon McLachlan, Tabcorp’s Managing Director and CEO, emphasized during an investors’ call that this acquisition provides a “unique opportunity to fast-track our evolution into a technology-driven organization.”
Expanding the Global B2B Landscape
Tabcorp has pointed out that the acquisition will drive technology improvement, enhance speed and efficiency, and develop a “global B2B growth engine” as the primary rationale for the takeover.
The firms already share a long-term commercial alliance and aim to realize AU$30 million ($21.2 million) in cost efficiencies within two years of the acquisition, resulting from “operational efficiencies and technology cost reductions.”
“Over the past two years, BetMakers has undergone a substantial transformation, establishing impressive wagering technologies and cultivating a skilled team. Leveraging these strengths will elevate our technological capabilities and accelerate our product goals,” McLachlan added.
BetMakers CEO Jake Henson stated that both companies share a unified vision of creating a top-tier global wagering and media enterprise.
“Combining Tabcorp’s rights, content, and industry connections with BetMakers’ platforms, data, and B2B wagering offerings will forge a more comprehensive and attractive global service for our customers and an exciting future for our workforce,” he asserted.
From $3.1B Acquirer to Target
This agreement rekindles acquisition conversations that initially began in February, when BetMakers confirmed informal discussions with Tabcorp regarding a potential buyout.
However, BetMakers indicated that those talks had halted without any offers being made. Six months later, both parties reconvened to establish a consensus.
This acquisition also signifies a notable shift from BetMakers’ prior offer to acquire Tabcorp’s media and wagering segments for AU$4 billion ($3.1 billion) in cash and equity back in 2021, a proposal that Tabcorp ultimately declined.
BetMakers enters this agreement with a backdrop of improved financial performance, reporting AU$24.2 million ($17.1 million) in revenue for the quarter ending June 30, marking a 9.4% year-on-year increase. Adjusted EBITDA surged 89%, reaching AU$4.5 million ($3.2 million).
This growth was bolstered by a significant partnership established with Stake in late 2025 aimed at expanding the operator’s horseracing portfolio.