DraftKings has agreed to acquire odds maker and player prop provider Sports IQ Analytics for an undisclosed fee.
Sports IQ’s CEO Omer Dor confirmed the deal via a post on Linkedin, in which he said that his team is excited to open “a new chapter in the Sports IQ Analytics journey” and join an ambitious team at DraftKings.
“I feel privileged for the last six years, working alongside the incredible group of people that make the Sports IQ team,” added Dor. “They are hardworking, intelligent and passionate and I’m so excited that we get to bring our skills and energy to DraftKings.
“Thank you to my co-founders Matthew Belberg, Jose Alfaro and Andrew Schwartz for sharing this journey with me. For celebrating the good moments together, and sticking by each other through the more challenging times.”
Dor also thanked those who have invested in Sports IQ. Boston Red Sox CEO Sam Kennedy and Fenway Sports Group (FSG) President Mike Gordon are among those who have invested in the company.
The deal has been facilitated by Eric Levy from Osler, Hoskin & Harcourt LLP, Robin Chabra of Tekkorp, and their respective teams.
At the time of writing DraftKings are yet to comment on the matter.
DraftKings report “outstanding” first quarter
The acquisition of Sports IQ comes off the back of a strong Q1 showing for DraftKings.
The operator exceeded its expectations for the opening quarter of 2024, reporting that its revenue for Q1 grew 53% year-over-year to $1.18 billion. It also recorded adjusted EBITDA of $22.4 million, down from $151 million in Q4 but a big improvement from a loss of $221.6 million it reported in Q1 2023.
DraftKings CEO Jason Robins cited a number of factors for the positive results, including encouraging customer engagement results and the company’s launch in Vermont and North Carolina. DraftKings’ average monthly unique players rose 23% year-over-year to 3.4 million and average player spend also increased by 25%, up to $114 per user.
As a result of the strong posting, DraftKings has revised its forecast for the rest of the year. It has raised the midpoint of its guidance to $4.9 billion from $4.775 billion, which would represent year-on-year growth of 33.5%.
