Dallas-based Topgolf is merging with publicly traded golf brand Callaway in an all-stock transaction valued at $2 billion.
The merger combines Callaway, a global golf equipment company, with Topgolf, which made its name as a party-golf attraction for players at all skill levels.
Topgolf's driving ranges allow players to track their golf balls electronically and play against other groups nearby while ordering food and drinks.
Callaway already owned 14% of Topgolf and first invested in the company in 2006.
"Together, Callaway and Topgolf create an unrivaled golf and entertainment business,'' said Chip Brewer, President and CEO of Callaway. "This combination unites proven leaders with a shared passion for delivering exceptional golf experiences for all -- from elite touring professionals to new and aspiring entrants to the game."
The Dallas Morning News reports Topgolf generated $1.1 billion in revenue last year at 63 locations that drew more than 23 million customers. And it has plans or letters of intent to build another 33 facilities and designs on growing outside the United States through franchising.
More than half of Topgolf’s customers identify themselves as non-golfers, giving Callaway early exposure to potential golfers, The News reports. The venues include golf driving bays that use its ball-tracing technology to make games out of the experience, along with food, music and golf retail. Topgolf’s ball-tracing technology is seen on televised golf broadcasts and its mobile golf game, World Golf Tour, boasts 28 million members.
The merger is expected to be completed in early 2021, pending approval from shareholders from both companies.