In a recent announcement concerning its technology overhaul, Tabcorp's executives presented BetMakers as the optimal choice for acquisition due to its cost-effectiveness. The Australian company revealed it has secured 100% of BetMakers shares at AU$0.24 each (approximately US$0.17), valuing the company at around $283 million, with an enterprise value estimated at $267 million.
Tabcorp expects annual cost savings of up to $30 million by the end of the second year following the acquisition, primarily through technology enhancements. These efficiencies will result from integrating BetMakers’ advanced product suite, rationalizing data centers, consolidating contracts, and streamlining corporate support functions.
During a call with analysts, CEO Gillon McLachlan emphasized that the decision to collaborate with BetMakers rather than develop in-house technology was steeped in the potential for significant cost synergies. He characterized this acquisition as a more rapid and economical alternative to revamping Tabcorp’s existing legacy systems.
Tabcorp's Chief Technology Officer, Robert Fraser, praised BetMakers’ cloud-native, asset-light technology platform, noting its profitability and reduced execution risks compared to the traditional internal transformation approach. Fraser articulated that Tabcorp has amassed considerable legacy technology involving a mix of on-premises and cloud systems for data centers along with various third-party services.
Fraser remarked, “The cost synergies will be delivered with BetMakers much faster and cheaper than we would be able to do ourselves. That’s borne out of some detailed analysis of the alternative options.”
Chief Financial Officer Mark Howell aligned with this view, stating, “It was sort of the cheapest and most efficient way home and, in our view, was also the lowest risk option we had ahead of us to modernise the tech stack.”
Tabcorp intends to utilize BetMakers’ technology to construct a comprehensive end-to-end offering that integrates racing media, data, wagering technology, and tote services, with a focus on international markets. BetMakers’ racing data will enhance Tabcorp’s Sky Racing media content, which McLachlan described as critical for improved data analysis.
He stated, “Ultimately, we’re talking about having a full suite of vision, data, technology and wagering services, having them end-to-end and distributed to every significant territory in the world. [BetMakers] has complementary assets, and the timing and specific opportunity in each market will differ.”
Fraser highlighted the benefits of BetMakers’ customer intelligence and content capabilities, including their media expertise.
Regarding staff integration, executives revealed plans to retain key personnel from BetMakers, though the internal team leading Tabcorp's new technology division will mostly consist of new hires, with Fraser at the helm.
McLachlan remarked on the established clarity of the team’s objectives and structure, while Fraser noted that many who will facilitate this integration were involved in Tabcorp’s previous demerger, ensuring familiarity with existing systems.
McLachlan expressed enthusiasm for the expertise brought by BetMakers staff, particularly those versed in AI. He asserted, “They’re proven in digital transformation and we’ll harness that capability. Their focus on being lean and efficient and fast aligns with the culture that we are building at Tabcorp.”
