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.