BetMakers is an Australian betting technology firm backed by bookie Matthew Tripp. The firm proposed the acquisition of Tabcorp wagering and media arm. The proposed acquisition was valued at AU$4 billion.
If Tabcorp accepts, they will receive AU$1 billion in cash and AU$3 billion in BetMakers shares. Also, the number of new shares will be fixed after both parties agree on the deal. As of May 26, Tabcorp shareholders would get 65 percent interest in the proposed BetMakers and Tabcorp entity.
BetMakers has been trying to become the leader in the technology and data sports betting products and services market. It provides commercial advantages to both wagering operators and racing bodies.
Australian Betting Technology Firm to Acquire Tabcorp
The proposed acquisition of Tabcorp Wagering and Media division opens many opportunities for BetMakers. According to white label sports betting sources, the investment would be in line with the company’s business plans.
Sky Racing and TAB have strong betting brands. Thus, they would help BetMakers grow in Australia and other parts of the world.
However, BetMakers has competitors. Tabcorp received proposals from Entain PLC for AU$3 billion. They increased their bid to $3.5 billion. Another competitor is Apollo Global Management, which was for AU$4 billion.
According to live betting software experts, Tabcorp is undergoing a strategic review. Their goal is to establish actual values in all their business segments. Also, Tabcorp said that they are not considering the unsolicited proposals at present. However, they might change their position on the issue after the review.
Aside from the potential sale of the Wagering and Media division, Tabcorp can opt to separate its businesses that include the Lotteries and Keno division. The firm’s board of directors is supervising the strategic review. Also, they put the search for a new CEO on hold while the study is still ongoing.