On October 29, Beijing time, Callaway and Topgolf announced the merger of stock exchange on Tuesday. The implied equity value of Topgolf was about 2 billion dollars.
“Together, Calaway and Topgolf will create an invincible golf and entertainment industry,” said Chip brewery, President and CEO of Calaway golf, “We have already seen the value of Topgolf, and we are very confident to merge together to create greater and higher growth, a global golf and entertainment leader driven by technology.”
In 2006, Callaway invested in Topgolf, and the ball tool company had already owned 14% shares of this open-air entertainment company. The merger agreement includes the overall marketing cooperation of all Topgolf venues.
Topgolf has 63 venues around the world with more than 23 million users and an estimated revenue of USD 1.1 billion in 2019.
According to the merger agreement, Callaway estimated to give 90 million common shares to the shareholders of Topgolf. The registration and approval of the agreement will be completed in 2021. After the merger is completed, Callaway will own 51.5% shares of Topgolf.