TopBetta Australia to Acquire Mad Bookie
Australian online bookmaker, TopBetta Holdings Limited, will be expanding its racing profile within the Australian market through the purchase of Melbourne-based, Mad Bookie Pty.
Under the terms of the agreement, the acquisition of the race and sports betting operator, Madbookie.com.au, will include all of their assets including its database of more than 15,000 customers. Mad Bookie will continue to operate under its current brand Madbookie.com.au.
“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,” announced Todd Buckingham, chief executive of the Sydney-based TopBetta.
“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, which was launched two years ago, has an annualised turnover of A$80 million, which TopBetta believes will contribute directly to their corporate performance. TopBetta has announced that key staff members from Mad Bookie will be retained following the acquisition, including founder and chief executive, Brett Luntz.
“We are delighted to be joining the TopBetta group,” said Mr Luntz. “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.”
According to TopBetta, payment of the purchase price will be deferred until the end of the first 12 month period, allowing TopBetta to maintain cash flow over this important timeframe.
April 16, 2017