BBT.ASX: Acquisition of TopSport & $15m equity raise

Acquisition of TopSport & $15m equity raise

Stock	Bluebet Holdings Ltd (BBT.ASX)
Release Time	5 Feb 2025, 9:59 a.m.
Price Sensitive	Yes

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BlueBet to acquire TopSport, launches $15m equity raise

Key Points

Significantly earnings accretive for shareholders (>30% EPS accretion in FY26 and FY27)
Brings BlueBet closer to strategic 10% - 15% market share 'sweet spot' in Australia
Drives margin advantage, share of wallet and engagement leveraging BlueBet's technology platform

Full Summary

BlueBet Holdings Limited (ASX:BBT) has entered into a binding Asset Sale Agreement to acquire certain assets of Merlehan Booking Pty Ltd (trading as 'Top Sport'). The acquisition will leverage BlueBet's repeatable model for accretive M&A and expand on the highly-successful combination of BlueBet and betr. To support the acquisition, BlueBet is undertaking an institutional placement to raise gross proceeds of approximately $15.0 million. TopSport is an Australian sports and racing betting company operated by father and son duo Lloyd and Tristan Merlehan, who boast over 50 years' combined bookmaking experience. TopSport recorded $198.9 million turnover and $11.8 million Net Win in 1H25, resulting in a 5.9% Net Win margin. The Proposed Transaction is structured as an asset sale, with BlueBet only acquiring key assets from TopSport, including its customer database, brand and intellectual property. The purchase price will comprise an upfront payment of $10 million (70% in cash, 30% in scrip), deferred earn out payments based on the Net Gaming Revenue generated from TopSport customers in the first three years, the issuance of performance-based options and potential bonus payments. Tristan Merlehan, TopSport's CEO, will join BlueBet's Executive Team as Chief Trading Officer. The acquisition is expected to be significantly earnings accretive for BlueBet shareholders, with over 30% EPS accretion in FY26 and FY27.

Guidance

The acquisition is expected to deliver over 30% EPS accretion for BlueBet in FY26 and FY27.

Outlook

The acquisition materially enhances BlueBet's profitability and scale, and brings the company closer to its strategic target of 10%+ market share in Australia. Inorganic growth remains a key opportunity for BlueBet, and the company has a repeatable M&A model to drive further consolidation of the Australian wagering market.