Callaway Golf Co. has acquired the rest of driving-range operator Topgolf Entertainment Group in a move that will bring a company known for its clubs and golf balls into the fast-growing sports-entertainment business.
Golf club maker Callaway Golf Co said on Tuesday it would buy the rest of Topgolf Entertainment Group, giving the U.S. driving-range operator an equity value of about $2 billion.
Shares of Callaway, which has been an investor in Topgolf since 2006 and currently owns a 14% stake in the company, were up 2.3% at $20.25 in extended trading.
After the deal, Callaway shareholders will own about 51.5% of the merged entity, while Topgolf shareholders, excluding Callaway, will own the rest, the companies said.
Topgolf’s other investors include Providence Equity Partners, Fidelity Research and Management and Thomas Dundon, Chairman of Dundon Capital Partners.
Sports Business : More on Callaway Golf – Topgolf Entertainment group merger
– Callaway Golf, the $1.8 billion golf club maker has bought Topgolf
– Topgolf is an entertainment company that operates outdoor and indoor golf games. The company generated $1.9 billion in revenue in 2019 and has grown at a 30% compound annual rate
– Callaway initially invested in Topgolf in 2006 for 14% of the company
– Callaway expects TopGolf to grow significantly after reporting a 233% increase in revenue in the past 3 years.