A definitive business combination agreement has been struck between DraftKings, public trade special purpose acquisition company Diamond Eagle Acquisition Corp and international turnkey provider SBTech.
As a result, the three organizations will be merged into one under the DraftKings name to become the only vertically-integrated pure-play sports betting and online gaming company based in the United States.
Harry E. Sloan, Founding Investor of Diamond Eagle, stated: “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.”
Expected to close within the first half of 2020, the transaction 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.
Jason Robins, co-founder and CEO of DraftKings, added: “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 is set to continue to be led by Robins and will retain DraftKings’ management team, including co-founders Paul Liberman and Matt Kalish. As well as this SBTech’s management team will also be integrated into the organization.