On March 8, Callaway Golf (NYSE: ELY) announced it had completed its merger with Topgolf that was proposed back in October 2020. The company, which already owns the Callaway Golf, Odyssey, OGIO, Travis Mathew, and Jack Wolfskin brands, issued 90 million shares to obtain ownership of the 86% of Topgolf it didn’t already own.
Here’s what Callaway shareholders are getting with the Topgolf merger, and why it might supercharge Callaway’s business going forward.
Topgolf operates huge driving ranges with technology-enabled driving bays. The majority of its locations have 100 or more bays and also sell food, drinks, apparel, and equipment. Unlike a typical driving range, Topgolf venues cater to larger groups and a wider audience than the hardcore golfer demographic. At the time of the merger call in October, it had 58 venues in the U.S. and saw 23 million visitors in 2019 (it didn’t disclose 2020 visitor numbers).