Published
Mergers & Acquisitions

DraftKings purchases supplier SBTech and becomes public company

DraftKings has entered into a business agreement to purchase sports betting supplier SBTech through acquisition company Diamond Eagle Acquisition Corp.

DraftKings

The transaction is expected to close in the first half of 2020 and Diamond Eagle intends to change its name to DraftKings Inc., reincorporate in Nevada and remain Nasdaq-listed under a new ticker symbol.

Institutional investors have committed to a private investment of $304 million in Class A common stock of the combined company.

These investors include funds managed by Capital Research and Management Company, Wellington Management Company and Franklin Templeton.

It is anticipated the combined company will have a market capitalisation of approximately $3.3 billion and have over $500 million of unrestricted cash on the balance sheet.

DraftKings CEO Jason Robins said: "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 new DraftKings will continue to be led by Co-founder and CEO Robins and will retain DraftKings’ management team, including co-founders Paul Liberman and Matt Kalish. 

Gavin Isaacs, SBTech Chairman, said: "The combination of DraftKings and SBTech brings together two tech-native companies with the customer at their cores.

"SBTech will maintain its core business and continue its B2B focus. We are excited about the opportunity to join a company with a similar innovation DNA and create a unique and differentiated player in global sports betting and online gaming."

Reports first surfaced of DraftKings' interest in acquiring SBTech in June, while Diamond Eagle's interest in collaborating with DraftKings was rumoured in October.

Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Holland Casino
Nederlandse Loterij
Relax Gaming
Hoiana Resort & Golf
Tipico
Follow Us

Facing Facts: Q1 2024 analysis from across the globe

Gambling Insider tracks the Q1 results of operators across t...

Taking Stock: A guide to sports betting operator and supplier prices

Gambling Insider tracks sports betting operator and supplier...

Tailor-made: The power of personalisation in the modern gaming industry

With insights from GR8 Tech, Greentube and the Oregon Lotter...

Sportradar and the Taiwan Sports Lottery: More offerings, greater efficiency

Danny Fok, VP of Strategic Projects at Sportradar, speaks al...