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Last night, Callaway Golf Company announced a deal to acquire driving range company Topgolf for $2 billion.
Reading The Greens
Half party venue and half golf "experience," Topgolf is not your granddaddy's driving range. The company:
- operates 63 locations around the globe with open-air, climate-controlled bays.
- creates an "immersive" driving range experience - think Angry Birds simulation for kids and margarita delivery service for the adults.
- Last year, 23 million guests visited Topgolf with more than 50% identifying as "non-golfers."
Top Tech: Topgolf also owns Toptracer, the leading ball-tracing technology that is known for making professional golf watchable on television. Over the last three years, Toptracer technology has been deployed at 7,500 driving bays, generating 233% revenue growth for the unit.
Last Shot: The transaction is subject to the approval of Callaway shareholders, and will close in 2021 assuming no wedge is driven between the companies.