BetMakers Technology Group Ltd., an Australian wagering technology firm, has entered the quest for Tabcorp’s (TAH) wagering and media business with an AU$4 billion (US$3 billion) offer.
If selected, the B2B technology and software tools provider will pay $1 billion in cash to Tabcorp shareholders, funded by debt. The rest will come from BetMakers’ stock at a 15 percent premium.
Bookmaker Matthew Tripp fronted the BetMakers bid. BetMakers could offer the back-end technology to establish betting operations. Tripp invested $25 million in BetMakers in February then became an advisor in efforts to find deals for the company.
The bookmaker is also part of a consortium interested in News Corp. Australia forming a new betting outfit News Corp. is also holding discussions with Fox Corp.—both companies controlled by the Murdoch clan—to secure rights to the FOX Bet brand.
The Age and Sydney Morning Herald said the brand expects to be run by News Corp., which declined comment. The company will operate the outfit with partners associated with Tripp, an online gambling pioneer and founder of BetEasy. Sources said the acquisition of the FOX Bet name would be done without cash, relying instead on advertising credits.
The merger would combine BetMakers’ platform with Tabcorp’s media content, including Sky Racing, according to Asia Gaming Brief.
BetMakers has a market capitalization of $1.3 billion, far less than the $11.2 billion for Tabcorp. The company faces bidding competition from Entain’s $3.5 billion offer and a $4 billion bid from Apollo Global Management.
“Over the past few years, BetMakers has focused on growing an international footprint to position itself as a world-leading data and technology products and services provider,” BetMakers’ CEO Todd Buckingham said.
Analysts say the possibility of further expansion in the U.S. is one reason for the BetMakers bid.
“TAH shareholders would have exposure to both Australian and U.S. wagering markets with less risky B2B exposure in America than PointsBet,” wrote analysts at J.P. Morgan.
Tabcorp is still undecided whether to sell the wagering and media unit, or list it as a separate company on the Australian Stock Exchange.
