The Tabcorp Holdings Ltd (ASX: TAH) share price is in focus today after the company announced it will acquire BetMakers Technology Group Ltd (ASX: BET), a move set to accelerate its technology modernisation and deliver an expected $30 million in annual cost synergies within two years.
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What did Tabcorp report?
- Agreed to acquire 100% of BetMakers at $0.24 per share, implying an enterprise value of around $267 million
- Transaction expected to deliver $30 million in annual cost synergies by end of Year 2
- Anticipated to be earnings per share (EPS) accretive from Year 2 and double-digit EPS accretive from Year 3
- Pro forma leverage remains conservative at approximately 1.9x Net Debt/EBITDA at December 2025 (prior to synergies)
- Offer unanimously recommended by BetMakers Board
What else do investors need to know?
The acquisition, subject to BetMakers shareholder and regulatory approval, is intended to strengthen Tabcorp's wagering technology and extend its B2B capabilities globally. BetMakers shareholders can elect to take part of their consideration in Tabcorp shares, though no more than 25% of the total deal will be in scrip.
Tabcorp expects to fund the cash portion from its existing resources without stretching its balance sheet. The transaction is anticipated to complete in the third quarter of FY27, pending conditions and approvals.
What did Tabcorp management say?
Tabcorp's Managing Director & Chief Executive Officer, 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, particularly for our unique media and tote offering. Combining BetMakers' business with our rights, content and customer relationships creates a differentiated offering that will unlock growth and deliver attractive financial returns.
Tabcorp is midway through its strategic transformation, with strong foundations established, and this acquisition provides us with an excellent opportunity to accelerate our ambitions.
What's next for Tabcorp?
Tabcorp aims to integrate BetMakers' advanced technology platforms and B2B services to drive further innovation and efficiency. Management targets both operational cost savings and new revenue opportunities, particularly from expanding global reach and enhancing digital offerings.
The company has set its sights on maintaining a strong balance sheet while pursuing growth, with a continued focus on technology transformation and diversified international operations.
Tabcorp share price snapshot
The Tabcorp share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months. During this time, the company's shares have risen 22% over the period.
