BlueBet Holdings (ASX:BBT) signed a binding sale agreement to acquire certain assets of sports and racing betting company Merlehan Booking, trading as TopSport, according to a Wednesday filing with the Australian bourse.
The purchase price comprises an upfront payment of AU$10 million in cash and scrip, as well as deferred earn-out payments, performance-based options, and potential bonus payments.
To fund the acquisition, BlueBet launched a AU$15 million institutional placement. It will issue roughly 44.1 million new shares at a price of AU$0.34 apiece, which is a 3% premium to the last traded price.
The transaction is expected to close in April, subject to certain conditions.
BlueBet said the acquisition will bring it closer to its target of achieving a market share of 10% to 15%.
The company's shares climbed nearly 7% in recent Wednesday trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.