Callaway Golf, Topgolf announce massive merger

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Callaway and Topgolf announced on Tuesday an all-stock merger with an implied equity value of Topgolf of approximately $2 billion.

“Together, Callaway and Topgolf create an unrivaled golf and entertainment business,” said Chip Brewer, Callaway’s president and CEO. “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 invested in Topgolf in 2006 and the equipment manufacturer already owned 14 percent of the open-air entertainment company. That agreement included an integrated partnership at all Topgolf venues.

Topgolf has 63 locations around the globe with more than 23 million customers and approximately $1.1 billion in revenue in 2019.

Under the terms of the merger agreement, Callaway will issue approximately 90 million shares of its common stock to the shareholders of Topgolf. Regulatory approval of the agreement is expected to be completed in 2021 and upon completion of the merger Callaway will own approximately 51.5 percent of Topgolf.