American online sportsbetting operator DraftKings Incorporated has announced the signing of a definitive agreement that is to see it acquire local iGaming rival Golden Nugget Online Gaming Incorporated.
The Boston-headquartered firm used an official press release to declare that the all-stock deal values its latest purchase at around $1.56 billion and is expected to close during the first quarter of next year subject to shareholder approval and ‘the receipt of required regulatory approvals and other customary closing conditions’.
DraftKings Incorporated currently offers its mobile and retail sportsbetting services to punters in 14 American states including Colorado, Michigan, Pennsylvania and Illinois and inked an alliance in April that saw it take control of real-time gamification expert BlueRibbon Software Malta Limited. The company pronounced that the acquisition of Golden Nugget Online Gaming Incorporated is destined to ‘deliver significant strategic benefits’ that could be worth up to $300 million ‘at maturity’ while simultaneously permitting it to roll out ‘a multi-brand strategy’ that is destined to ‘enhance cross-sell opportunities and drive increased market share and revenue growth’.
Jason Robins (pictured) serves as the Chairman and Chief Executive Officer for DraftKings Incorporated and he used the press release to disclose that the coming purchase will allow his firm to exploit Golden Nugget Online Gaming Incorporated’s brand and experience to build a database containing some five million customers names. The boss furthermore proclaimed that the completed arrangement is to save costs by allowing both services to utilize the same in-house proprietary platform, consolidate their marketing spend and reduce corporate overheads.
Read a statement from Robins…
“Our acquisition of Golden Nugget Online Gaming Incorporated, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base including Golden Nugget’s loyal ‘iGaming-first’ customers. This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies.”
For its part and Houston-headquartered Golden Nugget Online Gaming Incorporated is a project of industry heavyweight Tilman Fertitta and is active in the iGaming scenes of Pennsylvania, Michigan and New Jersey via locally-approved versions of its domain at GoldenNuggetCasino.com. The operator additionally went public last year via a listing on the Nasdaq bourse and is to now offer its backers 0.365 shares in DraftKings Incorporated for every share of its they hold.
Fertitta, who holds 46% of the shares in Golden Nugget Online Gaming Incorporated, used the press release to assert that the purchase agreement is to moreover see DraftKings Incorporated receive ‘preferred pricing’ at his estate of land-based gambling properties and Landry’s-branded restaurants while concurrently becoming an exclusive sportsbetting, daily fantasy sports and iGaming partner for the Houston Rockets franchise of the National Basketball Association (NBA).
Fertitta’s statement read…
“This transaction will add great value to the shareholders as two market leaders merge into a leading global player in digital sports, entertainment and online gaming. Together, we can offer value to our combined customer base that is unparalleled.”