TopBetta makes customer grab with Mad Bookie acquisition
TopBetta will pay a potential $400,000 for Aussie bookmaker and 15,000 punters, intends to make “similar deals” in the future
TopBetta has bought Australian racing and sports betting operator Mad Bookie, a deal the operator’s CEO said made “a lot of sense” in an industry of high CPAs.
Sydney-listed TopBetta has agreed to pay an initial AU$100,000 cash instalment for the bookmaker, with the final purchase price to be calculated as the greater of 24x Mad Bookie’s average monthly revenue over the next 12 months, or $400,000 less specified expenses.
TopBetta will acquire a database of more than 15,000 Mad Bookie customers, a company which was founded two years ago and has grown to post annual turnover of approximately $80m.
And TopBetta CEO, Todd Buckingham, said following that the completion of the deal, the operator would look to complete further acquisitions in the future.
“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,” Buckingham said.
“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.”
Following completion of the deal, the Mad Bookie Business will continue to operate under its established brand but under TopBetta’s existing Northern Territory Racing Commission licence.
Mad Bookie founder and CEO, Brett Luntz, who remain with the firm in the mid-term, added: “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.”
Last year, MadBookie.com launched a new product enabling customers to create their own customised proposition bets on players across a variety of sports.
TopBetta operates proprietary technology platforms which combine online racing and sports wagering with a fantasy wagering platform that enables sports fans to compete against each other via online tournaments.