- Transaction expected to close in Q1 2021; Mark Locke retained as CEO
- Newly combined company to have US$150m of ‘unrestricted’ growth capital
- Merger said to be first sport-related SPAC deal involving UK company
Sports data and technology specialist Genius Sports Group (GSG) has confirmed plans to list on the New York Stock Exchange after agreeing a merger with special purpose acquisition company (SPAC) dMY Technology Group II.
The transaction value of approximately US$1.5 billion is based on the initial enterprise value of the newly combined company, and amounts to eight times GSG’s currently projected 2021 revenues of US$190 million.
A statement confirming the deal said ‘a group of institutional and experienced industry investors’ has committed US$330 million in private capital to participate in the transaction at US$10 per share.
It added that that the combined company will have ‘a substantially debt-free balance sheet’ and an estimated US$150 million of ‘unrestricted’ growth capital, which will be used to ‘accelerate its US and international expansion through organic growth and strategic acquisitions’.
Following the transaction, which is expected to close in the first quarter of 2021 and has been unanimously approved by both parties’ boards, GSG and dMY II shareholders will exchange their shares for shares in the new company, while the private investors will also hold stakes in the NYSE-listed entity.
GSG chief executive Mark Locke will lead the new company as chief executive and will be supported by what the firm describes as ‘a deep bench of talent with substantial experience across finance, technology and the sports betting industry’.
Former EMC executive Harry You and current Glu Mobile chairman Niccolo de Masi, who serve as the chairman and chief executive of dMY II respectively, will sit on the combined company’s board of directors.
Founded in 2000, London-based GSG acquires official data from sports events around the world and supplies it to sports betting operators. Its 500-strong client portfolio includes the National Basketball Association (NBA), US college sport’s NCAA, world soccer’s governing body Fifa, the Premier League, and Nascar.
“Genius Sports Group created the market for official data across all tiers of sports, helping fuel our sportsbook partners’ ever-increasing range of products,” said Locke. “This transaction will help us continue to expand and strengthen our position as a nexus of the global sports, betting and media ecosystem.”
Sportico reports that dMY II has about US$276 million held in escrow from its initial public offering (IPO) earlier this year, and that the Genius merger is the first sport-related SPAC deal involving a UK company.
GSG’s decision to enter the agreement comes amid rumours that rival data company Sportradar is making plans to go public, with Sportico reporting in July that the Swiss firm would likely do so through a SPAC, or blank-cheque company.
In April, daily fantasy sports and betting provider DraftKings went public after completing a three-way merger with gaming technology specialists SBTech and investment firm Diamond Eagle Acquisition Corp (DEAC).
Sports data and technology specialist Genius Sports Group (GSG) has confirmed plans to list on the New York Stock Exchange after agreeing a merger with special purpose acquisition company (SPAC) dMY Technology Group II.
The transaction value of approximately US$1.5 billion is based on the initial enterprise value of the newly combined company, and amounts to eight times GSG’s currently projected 2021 revenues of US$190 million.
A statement confirming the deal said ‘a group of institutional and experienced industry investors’ has committed US$330 million in private capital to participate in the transaction at US$10 per share.
It added that that the combined company will have ‘a substantially debt-free balance sheet’ and an estimated US$150 million of ‘unrestricted’ growth capital, which will be used to ‘accelerate its US and international expansion through organic growth and strategic acquisitions’.
Following the transaction, which is expected to close in the first quarter of 2021 and has been unanimously approved by both parties’ boards, GSG and dMY II shareholders will exchange their shares for shares in the new company, while the private investors will also hold stakes in the NYSE-listed entity.
GSG chief executive Mark Locke will lead the new company as chief executive and will be supported by what the firm describes as ‘a deep bench of talent with substantial experience across finance, technology and the sports betting industry’.
Former EMC executive Harry You and current Glu Mobile chairman Niccolo de Masi, who serve as the chairman and chief executive of dMY II respectively, will sit on the combined company’s board of directors.
Founded in 2000, London-based GSG acquires official data from sports events around the world and supplies it to sports betting operators. Its 500-strong client portfolio includes the National Basketball Association (NBA), US college sport’s NCAA, world soccer’s governing body Fifa, the Premier League, and Nascar.
“Genius Sports Group created the market for official data across all tiers of sports, helping fuel our sportsbook partners’ ever-increasing range of products,” said Locke. “This transaction will help us continue to expand and strengthen our position as a nexus of the global sports, betting and media ecosystem.”
Sportico reports that dMY II has about US$276 million held in escrow from its initial public offering (IPO) earlier this year, and that the Genius merger is the first sport-related SPAC deal involving a UK company.
GSG’s decision to enter the agreement comes amid rumours that rival data company Sportradar is making plans to go public, with Sportico reporting in July that the Swiss firm would likely do so through a SPAC, or blank-cheque company.
