BlueBet completes TopSport acquisition, eyes PointsBet deal

Australian wagering firm BlueBet Holdings has completed its acquisition of certain assets of TopSport, the betting brand operated by Merlehan Booking, after successfully migrating customers to its Betr platform overnight.  

The deal, which was first announced in February, has been finalized in less than two months, marking a key milestone in BlueBet’s expansion strategy.  

Under the terms of the agreement, BlueBet has paid an initial settlement of AU$1.5 million ($950,000) in cash, adjusted for customer account balances, pending bets, and employee entitlements. Additionally, the company has issued 8.8 million ordinary shares to Merlehan Family Investments.  

A further 23 million performance options and additional cash payments may be granted if certain milestones are achieved.  

The acquisition moves Betr closer to its target of capturing a 10-15% market share in the Australian betting market.  

The transition involved securely migrating over 63 million rows of customer data, ensuring a frictionless experience for TopSport users as they shift to the Betr platform.

As part of the deal, TopSport CEO Tristan Merlehan has joined BlueBet as Chief Trading Officer, further strengthening its leadership team.  

BlueBet CEO Andrew Menz praised the efficiency of the migration and integration process, emphasizing the company's ability to swiftly execute deals.  

“This outcome reflects our repeatable and scalable M&A model, underpinned by the speed and precision of our migration team,” Menz said. “Our ability to rapidly execute on the integration and migration with no disruption to our offering remains a key competitive advantage.”  

With the TopSport acquisition complete, BlueBet has now shifted focus to its AU$360 million ($229.3 million) bid for Australian sports betting company PointsBet.  

The proposal includes AU$240 M–260M in cash, AU$100 M–120M in scrip consideration (shares offered in place of cash), and identified synergies worth at least AU$40 million annually.

However, in February, PointsBet’s board approved a competing AU$353 million bid from MIXI Australia, the local subsidiary of Japanese digital entertainment giant MIXI Inc.  

If PointsBet shareholders approve the MIXI deal in late May, they would receive AU$1.06 per share in cash, representing a 27.7% premium over the company's closing price on February 25.  

“With the successful integration of TopSport, our focus now shifts to further inorganic growth opportunities, including our compelling and fully funded proposal to acquire PointsBet,” Menz said. “We believe ours is a superior proposal for shareholders to realize value in the short and long term.”