Consolidation taking hold in DFS, as Fantasy Aces lines up Fantasy Feud user base acquisition
Daily fantasy sports (DFS) operator Fantasy Aces has announced that it is to acquire “certain active DFS participants” in the database of Fantasy Feud.
Fantasy Aces has entered into a binding letter of intent with Gaming Nation, Fantasy Feud’s parent company, in an acquisition that will provide Fantasy Aces with direct access to more than 35,000 participants in the Fantasy Feud database.
Gaming Nation will receive a cash payment of Can$25,000 for the acquisition, while the remainder of the purchase price will be paid in common Fantasy Aces shares, the exact figure of that purchase price being decided as soon as Fantasy Aces and Gaming Nation have agreed on the number of unique user participants being acquired.
Tom Frisina, CEO of Fantasy Aces, said: “This deal should prove to be extremely accretive to shareholders.
“The timing of the deal could not be better as we move in to the biggest quarter of the year, with NFL starting, followed by NBA and NHL, while MLB and PGA continue.
“With certain states finally announcing that DFS players are able to freely play, we expect the whole industry to expand dramatically over the next few years.”
Scott Secord, President and CEO of Gaming Nation, said: “This agreement benefits both parties and our combined players and we are extremely pleased to have closed this deal.
“Tom and his team have demonstrated that they not only have the experience but the wherewithal to drive value from each player on their site.
“I am confident that not only will their revenues continue to grow exponentially, but they will be able to realise the site’s true potential and ultimately generate a significant return for us as shareholders.”
The states of New York and Massachusetts passed bills to regulate DFS in August.
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