Callaway Golf Company and the Topgolf Entertainment Group have entered into a merger agreement which will see the creation of what has been described as a “global golf and entertainment leader”.
“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,” said Callaway’s chief executive and president Chip Brewer.
Established in England in 2000, Topgolf now runs more than 60 state-of-the-art, entertainment-centric outdoor ranges and indoor centres worldwide and has its own ball-tracing and virtual golf technologies. Callaway has been an investor in Topgolf since 2006.
The announcement on Callaway’s corporate website noted as follows:
“Callaway, a global leader in premium golf equipment and active lifestyle goods, and Topgolf Entertainment Group (“Topgolf”), a global golf entertainment leader, 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 $2 billion, including the 14% already owned by Callaway.
“Together, Callaway and Topgolf would create an unrivaled golf and entertainment business. The combined company will be united by a shared passion for delivering exceptional golf experiences for all – from elite touring professionals to new and aspiring entrants to the game. Led by a portfolio of well-positioned brands and broad consumer reach, we believe the combination of Callaway and Topgolf will develop exciting new products and experiences, create compelling value for shareholders, and ultimately accelerate innovation in the game of golf.”
Callaway was established in 1982 by Ely Callaway and is hailed as a pioneer in oversized driver technology with the revolutionary Big Bertha line first released in 1991. One of the world’s top golf equipment and accessories companies today, Callaway’s other product lines include Odyssey Golf (putters), Ogio (golf bags), and apparel brands TravisMathew and Jack Wolkskin.