Fitch Ratings has assessed Tabcorp's acquisition of technology company BetMakers as credit neutral for the buyer's profile. The agency affirmed Tabcorp's BBB- rating with a stable outlook.
Tabcorp plans to acquire BetMakers through a scheme of arrangement at $0.17 per share, valuing the deal at around $190 million. Shareholders can choose cash or a mix of cash and new Tabcorp shares, with scrip capped at 25% of consideration.
Fitch describes the acquisition as moderately positive for Tabcorp's business profile. The deal will support the upgrade of its totalisator platform, reduce reliance on third-party providers and strengthen technology control. BetMakers brings diversification through B2B contracts and international operations, while reinforcing Sky Racing World and PGI. But the benefit will be incremental, as the combined group remains tied to wagering and racing.
Assuming full cash funding, Tabcorp's net leverage will rise to 2.5x by fiscal 2027, Fitch projects. The ratio should fall to 1.5x by 2030 on the back of BetMakers earnings and targeted cost savings of $21.2 million. Integration risks are moderate.
The main threat to Tabcorp remains the AUSTRAC investigation. Penalties, legal costs or compliance spending could weaken cash flow and delay deleveraging.
