DraftKings set to combine with Diamond Eagle and SBTech
DraftKings has entered into a definitive business combination agreement with public trade special purpose acquisition company Diamond Eagle Acquisition Corp and international turnkey provider SBTech.
As a result, the three organisations will be merged into one to become the only vertically-integrated pure-play sports betting and online gaming company based in the United States.
Jason Robins, co-founder and CEO of DraftKings, stated: “The combination of DraftKings’ leading and trusted brand, deep focus on customer experience and data science expertise and SBTech’s highly innovative and proven technology platform creates a vertically-integrated powerhouse.
“I look forward to building significantly upon our goals of continuing our state-by-state rollout and creating the most entertaining and engaging customer experiences for sports fans globally.”
The transaction, which is expected to close within the first half of 2020, by which time will see Diamond Eagle change its name to DraftKings Inc, reincorporate into Nevada and remain Nasdaq-listed under a new ticker symbol.
Moreover, Institutional investors have committed to a private investment of $30m in class A common stock, with the combined company to be valued at $3.3bn and have $500m on hand following the transaction.
Harry E. Sloan, founding investor of Diamond Eagle, added: “We are pleased to bring DraftKings and SBTech together as one public company. DraftKings is already a premier online fantasy sports and betting platform.
“With the full integration of SBTech’s technology and innovative product expertise coupled with the right capitalization, DraftKings will be in a great position to continue its ambitious expansion plans in the United States. I have known Jason Robins for four years, and consider him a true entrepreneur. I believe our investors share my utmost respect for his vision and leadership.”
The new DraftKings will continue to be led by Robins and will retain DraftKings’ management team, including co-founders Paul Liberman and Matt Kalish.
SBTech’s management team, who bring a wealth of experience in regards to international markets, trading and risk management, will also be integrated into the organisation.
Source: SBC News
