TopBetta acquires Mad Bookie
TopBetta has entered into a binding, conditional agreement to acquire the assets of online Australian corporate bookmaker, Mad Bookie , including its customer database, clients.
Completion of the Acquisition is conditional on TopBetta receiving approval from each of Northern Territory Racing Commission (“NTRC”), Racing Victoria and Racing NSW in respect of the Acquisition and there being no material adverse change in the financial condition of the Mad Bookie Business.
After completion and for the immediate term, the Mad Bookie Business will continue to operate under its established brand but under TopBetta’s existing licence held with NTRC. The Company plans to align the synergies across the business’ while maintaining the unique brands of both TopBetta and Mad Bookie.
Mad Bookie has grown quickly over the past 2 years with unaudited annualised turnover of ~$80M from an acquired database of punters in excess of 15,000.
The Company’s CEO, Todd Buckingham, said: “The acquisition of Mad Bookie has the potential to quickly and substantially increase turnover for TopBetta’s retail business while adding significant revenues due to higher yields and cost savings through aligning the synergies between the businesses.
“The deal will also defer payment of the purchase price until after the first 12 months, which will allow the TopBetta business to maintain cash flows over the initial period.
“To acquire a ready-made, active database like Mad Bookie’s under this arrangement makes a lot of sense in an industry that has high customer acquisition costs, and we will certainly be on the lookout for similar deals should they arise in the future, both here in Australia and Internationally.”
Mad Bookie founder and CEO, Brett Luntz, and key staff will remain with the Mad Bookie Business for at least the Earn Out Period, with Mr Luntz agreeing to provide consulting services to the Company at market rates throughout this period.
Brett Luntz said “We are delighted to be joining the TopBetta group. We believe that the baseline we have set up for our loyal customer base over the past 24 months will be further enhanced through this acquisition and the synergies it delivers. We couldn’t be more excited.”