Key points:
- BlueBet has signed a binding asset sale agreement to acquire key assets of TopSport
- The deal is expected to increase earnings per share by over 30% in FY26 and FY27
- A $15m institutional placement will fund the upfront payment and integration costs
BlueBet Holdings has announced an agreement to acquire the assets of Australian sports betting operator TopSport, a move that will expand its market presence and enhance operational scale.
The deal, structured as an asset sale, will see BlueBet take over TopSport’s customer database, brand, intellectual property, material contracts and select employees while excluding other assets and liabilities.
The transaction includes an upfront payment of $10m, with 70% in cash and 30% in shares, alongside deferred earn-out payments linked to net gaming revenue from TopSport customers over the next three years. The agreement also involves performance-based options and potential bonus payments. Regulatory approval from the Northern Territory Racing Commission and the Greyhound Welfare and Integrity Commission is required, with completion expected in April 2025.
To support the acquisition, BlueBet has launched a $15m institutional placement, issuing approximately 44.1 million new shares at $0.34 per share.
The placement represents 7.8% of the company’s existing share capital and will cover the cash component of the purchase price, integration costs and future growth initiatives.
BlueBet CEO Andrew Menz stated: “The acquisition of TopSport materially enhances BlueBet's profitability and scale, is highly accretive for our shareholders and brings us closer to our strategic target of 10%+ market share in Australia.”
Good to know: TopSport, founded by Tristan and Lloyd Merlehan, recorded a $198.9m turnover and $11.8m net win in 1H25, with a 5.9% net win margin. Its sports-focused customer base is expected to contribute to additional revenue synergies on BlueBet’s platform
Tristan Merlehan, TopSport CEO, commented: “We conducted a thorough process to identify the best partner for TopSport and BlueBet was the clear choice. BlueBet's recent and long-term record in successful customer migrations and scaling wagering businesses is unrivalled in this market and I am pleased to play a key role in its bright future as we grow our share of the Australian wagering market.”
This acquisition follows BlueBet’s 2024 purchase of Betr, which was part of its broader strategy to increase operational efficiency and market consolidation. The company has also reported EBITDA profitability in 1H FY25, driven by cost synergies and trading performance.
Pending regulatory approvals, the deal is expected to further strengthen BlueBet’s position in the Australian wagering market, with Merlehan set to join BlueBet’s executive team as Chief Trading Officer upon completion.
