The mobile and land-based sports betting company DraftKings has today announced an agreement to acquire Golden Nugget Online Gaming in an all stock transaction worth approximately $1.56bn.
DraftKings hopes this agreement will allow the company to utilize the well-known brand of Golden Nugget as well as its experience in igaming development and customer base of over five million people.
The deal also sees DraftKings enter a commercial agreement with gaming, hospitality and sports company Fertitta Entertainment, LLC, Golden Nugget’s parent company, as well as owners of the Houston Rockets.
Under the terms of the agreement, Golden Nugget Online Gaming shareholders would receive 0.365 shares of DraftKings’ Class A common stock for each common share of Golden Nugget Online Gaming they hold.
“Our acquisition of Golden Nugget Online Gaming, 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,” said Jason Robins, DraftKings’ CEO and chairman. “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. We look forward to Tilman [Fertitta] being an active member of our board and one of our largest shareholders.”
Fertitta, chairman and CEO of Golden Nugget, added: “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. Leveraging Fertitta Entertainment’s broad entertainment offerings and extensive customer database, coupled with DraftKings’ mammoth network makes this an unbeatable partnership. Together, we can offer value to our combined customer base that is unparalleled. We believe that DraftKings is one of the leading players in this burgeoning space and couldn’t be more excited to lock arms with Jason and the DraftKings family across our entire portfolio of assets, including the Houston Rockets, the Golden Nugget casinos and Landry’s vast portfolio of restaurants. This is a strong commercial agreement for both companies.”
The companies have cited increased revenues, optimization of technology and market efficiencies as key reasons for the merger-acquisition.
