DALLAS — Dallas-based Topgolf Entertainment Group and Callaway Golf Co. announced a merger Tuesday that will create a player unlike any other in the golf industry.
The announcement comes just a few hours after the Wall Street Journal reported the two parties were in talks about a potential deal Tuesday. The move creates a company with pro-forma 2019 revenue of nearly $2.8 billion — over $1.7 billion from Callaway and nearly $1.1 billion from Topgolf — and values Topgolf at approximately $2 billion.
"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," Dolf Berle, CEO of Topgolf, said in a prepared statement.
Topgolf will continue to operate from its Dallas headquarters, the company said. Berle will lead Topgolf through a transition period following the close of the deal, but will then step away from the company to pursue "other leadership opportunities," the companies said. Chip Brewer, current president and CEO of Callaway, will continue to lead the company.
The combined company's board will consist of 13 directors including three appointed by Topgolf shareholders. Callaway will assume Topgolf's net debt, which is estimated to be $555 million at closing. That gives Topgolf an enterprise value of approximately $2.5 billion.
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