Draft Kings will go public next year through a $3.3 billion merger with two other firms, the company announced Monday.
The move comes more than two years after the online sports gaming company scrapped plans to merge with FanDuel, another major player in the daily fantasy sports market.
Draft Kings will combine with Diamond Eagle Acquisition Corp., a blank-check company that is already publicly traded, and gaming technology firm SBTech to create the nation’s only vertically integrated “pure-play” sports betting and online gaming firm, according to a press release.
“With the full integration of SB Tech’s technology and innovative product expertise coupled with the right capitalization, Draft Kings will be in a great position to continue its ambitious expansion plans in the United States,” Harry E. Sloan, Diamond Eagle’s founding investor, said in a statement.
All three companies’ boards of directors have approved the tie-up, which is expected to be completed in the first half of next year. Draft Kings co-founders Jason Robins, Paul Liberman and Matt Kalish will be on the new company’s management team, along with members of SB Tech’s existing management, the firms said.
Diamond Eagle plans to change its name to Draft Kings and get a new Nasdaq ticker symbol once the deal closes, the companies said. Diamond Eagle shares were up about 11 percent in premarket trading at $11.75 as of 9:15 a.m.
Draft Kings said it has a 60 percent market share for daily fantasy sports, in which fans compete online for cash prizes. The company also offers online and retail sports betting in seven states including New Jersey, where it said its revenue has multiplied 8.5 times year over year.