Callaway announces billion dollar TopGolf merger

Callaway Golf has been quietly building up a stable of brands under their company banner for years and now the golf equipment maker is turning its sights on something new.

Callaway Golf President and CEO, Chip Brewer, has announced a merger with TopGolf, which values the driving-range juggernaut at close to US$2 billion.

Callaway announces billion dollar TopGolf merger

“Together, Callaway and Topgolf create an unrivalled golf and entertainment business,” said Brewer.

“We’ve long seen the value in Topgolf and we are confident that together, we can create a larger, higher growth, technology-enabled global golf and entertainment leader. Callaway’s strong financial profile will enable the combined company to accelerate innovation, develop exciting new products and experiences, and create compelling value for shareholders.”

Callaway already owned 14% of TopGolf after first investing in the company in 2006 and have maintained close ties through an exclusive golf partnership agreement at all of venues.

In Australia, TopGolf has just the one venue located on the Gold Coast, however their worldwide footprint consists of 63 locations serving more than 23 million customers last year alone with revenue of over US$1 billion.

The important part of the equation for Callaway is that more than 50% of guests at TopGolf identify as non-golfers, which provides a huge opportunity to convert some of those customers into fully-fledged Callaway loyalists.

The merger is expected to be finalised some time in early 2021.