Callaway Merges with Topgolf in Deal Valued at US$2 Billion

Carlsbad, California, United States: Callaway and Topgolf Entertainment Group have announced that the companies have entered into a definitive merger agreement.

Under the terms of the agreement, Callaway and Topgolf will combine in an all-stock transaction creating a global golf and entertainment leader. The number of shares to be issued is based upon an implied equity value of Topgolf of approximately US$2 billion, including the 14% already owned by Callaway.

Topgolf is the leading tech-enabled golf entertainment business, with an innovative platform that comprises its ground-breaking open-air venues, revolutionary Toptracer technology and innovative media platform with a differentiated position in eSports. Topgolf generated approximately US$1.1 billion in revenue in 2019 and has grown at a 30% compound annual rate since 2017.

Callaway is a leader in the global golf equipment market with a scale position in active-lifestyle soft goods. Company growth has exceeded golf market growth for seven consecutive years.

The companies together will be able to accelerate growth, including through:

  • Fully Funded High Growth Opportunities: Topgolf is a high-growth platform with attractive unit economics across its businesses that will benefit from Callaway’s strong financial position that can fully fund Topgolf’s growth plans at an attractive cost of capital.
  • A Highly Complementary Fit: The two companies share a focus on golf and active-lifestyle consumers. With Topgolf’s 90 million consumer touch points a year, the combined company will benefit from a compelling family of brands with reach across multiple channels including retail, venues, e-commerce and digital communities. Topgolf is introducing new players to the game of golf, a powerful trend that benefits Callaway’s golf equipment and soft goods businesses.
  • Enhanced Resources to Accelerate Growth: The combined company’s industry-leading sales, marketing and partnership infrastructure will drive traffic, increase same venue sales and accelerate conversion of new business opportunities. Together, Callaway and Topgolf’s significantly expanded consumer reach will drive increased promotion, exposure and sales of equipment and apparel to golfers and non-golfers alike.
  • Innovation to Drive Long-Term Potential: A shared innovative culture creates exciting long-term opportunities including the potential to distribute content across connected screens for instruction, fitness and lifestyle.

“Together, Callaway and Topgolf create an unrivalled golf and entertainment business,” said Chip Brewer, President and Chief Executive Officer of Callaway. “This combination unites proven leaders with a shared passion for delivering exceptional golf experiences for all – from elite touring professionals to new and aspiring entrants to the game.

“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, while providing the dedicated teams of both companies more opportunities to showcase their talents and complementary capabilities.”

Dolf Berle, Chief Executive Officer of Topgolf, said: “We are excited to join the Callaway family and strengthen the experiences we create at the intersection of sports and tech-driven entertainment.

“Fuelled by a tremendous team of associates and a diverse offering across our venues, Toptracer, and media platform, Topgolf is truly changing the landscape of the industry by making golf more inclusive and accessible to people of all ages, demographics and skill levels.

“As part of Callaway, we plan to grow our leadership position by leveraging Callaway’s brand reputation, industry relationships and financial strength to connect more communities around the world to the Topgolf experience.”

Related Articles

We hope that you enjoy and value the information provided by the AGIF on our website and via our other multi-media channels. As a not-for-profit organisation, the AGIF relies largely upon membership dues to fund its operations. This is especially true during the Covid-19 period. AGIF Membership also has its privileges. In joining the AGIF, you will have the opportunity to publicise your brand and activities and participate in the Federation’s educational events at discounted prices. We welcome you to join the AGIF. In doing so, you will be supporting your brand and the industry. For more information, please see Membership Benefit page.