DraftKings Inc., a Boston, MA-based digital sports entertainment and gaming company known for its daily fantasy sports and mobile sports betting platforms, is to merge with Diamond Eagle Acquisition Corp. (Nasdaq: DEAC), a publicly traded special purpose acquisition company, and SBTech, an international provider of sports betting and gaming technologies.
In conjunction with the closing of the transaction, expected for the first half of 2020, Diamond Eagle intends to change its name to DraftKings Inc., reincorporate in Nevada and remain Nasdaq-listed under a new ticker symbol.
Institutional investors (including funds managed by Capital Research and Management Company, Wellington Management Company and Franklin Templeton) have committed to a private investment of $304m in Class A common stock of the combined company that will close concurrently with the business combination and, subject to any redemptions by DEAC stockholders, there is $400 million currently held in Diamond Eagle’s trust account. The combined company will have an equity market capitalization at closing of approximately $3.3 billion and have over $500 million of unrestricted cash on the balance sheet.
The new DraftKings will continue to be led by co-founder and CEO Jason Robins and will retain DraftKings’ management team, including co-founders Paul Liberman and Matt Kalish. The SBTech management team will also be integrated into the organization.
DraftKings is a U.S.-based digital sports entertainment and gaming company whose products are available in 8 countries internationally with 15 distinct sport categories.
Launched in 2018, DraftKings Sportsbook offers mobile and retail betting for major national and global sports, and currently operates pursuant to state regulations in Indiana, Iowa, Mississippi, New Jersey, New York, Pennsylvania and West Virginia. It is the Official Daily Fantasy Partner of the NFL and PGA Tour as well as an Authorized Gaming Operator of the MLB and NBA. They have offices across the country including Las Vegas, New Jersey, New York, and San Francisco.
Founded by media executive Jeff Sagansky and founding investor Harry Sloan, Diamond Eagle Acquisition Corp. was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.