Golf club maker Callaway Golf Co said on Tuesday it would buy the rest of Topgolf Entertainment Group, giving the U.S. driving-range operator an equity value of about $2 billion.
Shares of Callaway, which has been an investor in Topgolf since 2006 and currently owns a 14% stake in the company, were up 2.3% at $20.25 in extended trading.
After the deal, Callaway shareholders will own about 51.5% of the merged entity, while Topgolf shareholders, excluding Callaway, will own the rest, the companies said.
Topgolf’s other investors include Providence Equity Partners, Fidelity Research and Management and Thomas Dundon, Chairman of Dundon Capital Partners.
Source: Reuters.com