BlueBet to Acquire TopSport in Strategic Market Expansion

The move is expected to strengthen BlueBet’s market presence, enhance operational scale, and drive profitability. This acquisition marks another phase of industry consolidation within the Australian wagering sector as BlueBet positions itself for long-term growth.

Key Deal Highlights

• Binding Asset Sale Agreement: BlueBet will acquire TopSport’s customer database, brand, intellectual property, material contracts, and select employees. However, certain assets and liabilities will be excluded from the transaction.

• Earnings Growth: The acquisition is forecasted to increase BlueBet’s earnings per share by more than 30% in FY26 and FY27.

• Funding and Financial Structure: A $15 million institutional placement will fund the upfront payment and integration costs.

• Regulatory Approvals Required: The transaction is subject to approvals from the Northern Territory Racing Commission and the Greyhound Welfare and Integrity Commission, with completion anticipated in April 2025.

Financial Structure and Investment Details

Under the terms of the agreement, BlueBet will make an upfront payment of $10 million, with 70% paid in cash and 30% in shares. Additionally, deferred earn-out payments will be based on net gaming revenue generated from TopSport customers over the next three years. The deal also includes performance-based options and potential bonus payments linked to revenue milestones.

To support the acquisition, BlueBet has initiated a $15 million institutional placement, issuing approximately 44.1 million new shares at $0.34 per share. This represents 7.8% of the company’s existing share capital and will be used to cover the cash component of the purchase price, integration costs, and future growth initiatives.

Strategic Rationale and Expected Synergies

The acquisition aligns with BlueBet’s long-term vision to increase its market share in Australia to over 10%. By integrating TopSport’s operations, BlueBet aims to optimize its customer acquisition and retention strategies, leveraging TopSport’s sports-focused player base for enhanced revenue generation.

BlueBet CEO Andrew Menz emphasized the transaction’s strategic significance, stating: “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.”

TopSport’s Market Performance and Leadership Integration

Founded by Tristan and Lloyd Merlehan, TopSport recorded a $198.9 million turnover and an $11.8 million net win in 1H25, reflecting a 5.9% net win margin. The platform’s strong foothold in the sports betting segment is expected to complement BlueBet’s existing offerings.

Tristan Merlehan, CEO of TopSport, expressed confidence in the acquisition: “We conducted a thorough process to identify the best partner for TopSport, and BlueBet was the clear choice. BlueBet’s record in customer migrations and scaling wagering businesses is unrivaled, and I am excited to contribute to its future success.”

Upon completion, Merlehan will join BlueBet as Chief Trading Officer, bringing his industry expertise to the executive team.

Broader Industry Context

This acquisition follows BlueBet’s 2024 purchase of Betr, reinforcing its broader strategy of market consolidation and operational efficiency. BlueBet recently reported EBITDA profitability in 1H FY25, supported by cost synergies and strong trading performance.

Pending regulatory approvals, the acquisition of TopSport is poised to further strengthen BlueBet’s position in the Australian wagering market, driving sustained revenue growth and enhancing shareholder value.