Tabcorp Agrees AU$267 Million BetMakers Acquisition After Earlier Talks Fail

Tabcorp has revived its pursuit of BetMakers Technology Group, signing a binding agreement to acquire the wagering technology supplier for about AU$267 million ($188.6 million). The deal comes months after earlier takeover discussions failed to produce an agreement.

Good to Know

• Tabcorp will offer AU$0.24 per BetMakers share.
• The deal values BetMakers at about AU$267 million on an enterprise basis.
• Tabcorp targets AU$30 million in annual cost savings by the end of the second year.

Tabcorp Returns With Binding BetMakers Deal

The acquisition gives Tabcorp direct access to BetMakers technology, racing data and B2B wagering services as it continues to replace older betting systems.

Tabcorp CEO Gillon McLachlan said:

“The acquisition of BetMakers will accelerate our strategy across multiple areas. BetMakers has undergone a significant transformation over the past two years and built impressive wagering technology and a talented team. Accessing those advantages will uplift our own tech capability and fast track our product ambitions.”

BetMakers reported unaudited EBITDA of AU$14 million for the 12 months through June 2026. Tabcorp plans to fund the cash portion through existing cash and undrawn debt facilities. BetMakers shareholders can choose Tabcorp shares for part of their payment, although stock can represent no more than 25% of total consideration.

Cost reduction plays a large role in the deal. Tabcorp expects savings from combining data centres, technology contracts and corporate functions while replacing parts of its existing wagering platform with BetMakers products. Management expects the transaction to add to earnings per share from year two and deliver double digit EPS accretion from year three.

BetMakers CEO Jake Henson said:

“Having spent time with the Tabcorp team, it is clear we share a common purpose: to build a market-leading global wagering and media business.

“Bringing together Tabcorp’s rights, content and relationships with BetMakers’ platforms, data and B2B wagering services will create a more complete and compelling global offering for our customers.”

The AU$0.24 offer carries premiums of about 41%, 42% and 37% against the BetMakers one month, three month and six month volume weighted average share prices respectively. The BetMakers board unanimously supports the transaction, subject to the usual conditions and an independent expert finding that the deal serves shareholder interests.

Completion still requires BetMakers shareholder approval, court approval, Australian Competition and Consumer Commission clearance and gaming and racing regulatory consents. Tabcorp and BetMakers target completion during the third quarter of Tabcorp FY2027.

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