BlueBet agrees to acquire TopSport assets – M&A

BlueBet Holdings has announced a significant strategic move by entering into an agreement to acquire select assets from Merlehan Booking, a leading sports and racing betting operator in Australia known as TopSport.

As part of this agreement, BlueBet will pay an upfront sum of AU$10 million (approximately £5 million/€6 million/US$6.3 million) to secure these assets. This financial commitment will be structured as 70% in cash and 30% in newly issued ordinary shares of BlueBet.

The acquisition deal, disclosed today (5 February), also highlights potential additional payments that are contingent upon reaching specific share price milestones and the net gaming revenue performance of the acquired assets.

To finance the cash component of the purchase, BlueBet has successfully conducted an equity raising, aiming to secure AU$15 million in gross proceeds through the issuance of around 44.1 million new shares.

Strategic Rationale Behind the Acquisition

TopSport, managed by the father-son duo Lloyd and Tristan Merlehan, is a prominent player in the Australian betting market, specializing in both sports and racing wagering. In the first half of the 2025 financial year, TopSport reported an impressive turnover of AU$198.9 million and a net win of AU$11.8 million.

BlueBet’s acquisition will focus exclusively on particular assets of TopSport, which include its customer database, branding, intellectual property, select contractual agreements valued by BlueBet, and a number of key personnel. Notably, TopSport’s CEO, Tristan Merlehan, will transition to join BlueBet’s executive team as Chief Trading Officer.

Elaborating on this strategic decision, BlueBet emphasized the “attractive wagering characteristics” of TopSport’s customer base, particularly its strong inclination toward sports wagering. This target market aligns with BlueBet’s aim to generate substantial revenue synergies on its Betr platform—a branding strategy they adopted following their merger with Betr in July of the previous year.

Provided that all closing conditions and regulatory approvals are met, the transaction is expected to finalize in April 2025.

Enhancing Profitability and Scale

BlueBet’s CEO, Andrew Menz, commented on the acquisition, framing it as part of the company’s long-term strategy aimed at bolstering shareholder value.

“The acquisition of TopSport significantly enhances BlueBet’s profitability and scalability, representing a highly accretive opportunity for our shareholders while advancing toward our strategic goal of achieving over 10% market share in Australia,” Menz noted.

“This strategy of inorganic growth remains a vital opportunity for us. We maintain a focused approach and a well-defined mergers and acquisitions (M&A) model, aimed at consolidating the Australian wagering market and enhancing shareholder value,” he added.

“This acquisition serves as a blueprint for further M&A activity, demonstrating a high conversion rate of net gaming revenue to EBITDA as we leverage our investments in proprietary technology, brand development, and a best-in-class management team.”

Tristan Merlehan, CEO of TopSport, expressed enthusiasm about the partnership, stating that TopSport undertook a rigorous selection process to identify the most suitable partner and found BlueBet to be the clear choice.

“BlueBet’s proven track record in customer migrations and scaling betting operations is unmatched in this market. I am eager to contribute to our collective success as we enhance our presence within the Australian wagering sector,” he remarked.

“I take great pride in what we have accomplished at TopSport, and I assure our customers will continue to enjoy the same exceptional levels of service, coupled with significant improvements to their wagering experience.”

BlueBet’s Impressive Q2 Growth Figures

This acquisition announcement coincides with BlueBet’s recent disclosure of robust financial performance in Q2.

Turnover surged by 131%, reaching AU$357 million for the quarter ending December 31, 2024, while gross win soared 146% to AU$52.2 million. The net win for Q2 also experienced a remarkable increase of 142%, totaling AU$39.2 million.

The financial update provided insights into H1 performance, marking the first half as a unified company following the Betr merger. Turnover for this six-month period jumped 116% to AU$645.1 million, gross win rose by 128% to AU$91.3 million, and net win escalated by 120% to AU$67.4 million.

Furthermore, BlueBet achieved normalized EBITDA positivity for the first half, ahead of forecast for the expanded operation.

“We reached this critical milestone ahead of schedule, driven by our strategic customer reactivation efforts, enhanced product offerings combined with high-margin platforms, strong performance during the Spring Racing Carnival, and the swift realization of cost and revenue synergies,” Menz elaborated.

“This momentum has carried into January as we prioritize profitable business scaling through both organic and inorganic growth. Our leading-edge products, experienced workforce, and ready-to-deploy M&A strategy remain key differentiators for us in the competitive landscape.”