Genius Sports Group (GSG), a provider of data and technology for the sports, betting and media industry, announced a business combination agreement with Technology dMY Group, a publicly traded acquisition company.
As a result, shareholders of GSG and dMY II will exchange their shares for shares in a new combined company (“NewCo”), which will be publicly listed on the New York Stock Exchange (the “NYSE”). The transaction amounts to approximately US $ 1.5 billion.
After closing, NewCo expects its shares and guarantees to be traded on the NYSE under the symbols “GENI” and “GENI WS”, respectively.
In addition to the approximately $ 276 million held in the dMY II account, a group of institutional investors pledged to participate in the transaction through common shares of approximately $ 330 million.
Details of business combination
After the proposed business combination is closed, Mark Locke will continue to lead the business as CEO of NewCo. Locke will be supported by a talent bank with expertise in finance, technology and the sports betting industry.
“The Genius Sports Group created the market for official data at all levels of sports, helping to fuel an ever-expanding range of products from our betting partners,” he said. Locke.
“This transaction will help us to continue to expand and strengthen our position as a global leader in sports, betting and media,” he added.
NewCo is expected to have an initial value of $ 1.5 billion. While the installment payable to the group’s existing shareholders will consist of a combination of cash and equity accumulated in NewCo.
The proceeds from the $ 330 million transaction will be used to repay shareholder loans and make certain payments for preferred shares held by corporate shareholders.
Assuming that there are no redemptions by dMY II public shareholders, NewCo will have approximately $ 150 million in cash and a debt-free balance sheet.
Therefore, the Boards of Directors unanimously approved the transaction. However, the deal will require the approval of dMY II shareholders and is subject to other customary closing conditions, including a minimum cash levy.
The trend is for the entire operation to be completed in the first quarter of 2021.
About Genius Sports Group
Genius Sports acquires data from sporting events around the world and provides it to sports betting operators, making data and content available in a safe, high-quality manner that helps them interact with their customers.
The company has a leading portfolio of official data rights – the live sports statistics feed. The group also offers data on more than 240,000 events each year. In addition, it is the official provider of more than 170,000 of these events.
The scale, access to official data and the innovative technology platform set it apart in the global segment. In addition, Genius Sports maintains long-term partnerships with more than 500 sports organizations worldwide, including NBA, NCAA, FIBA, FIFA, Premier League and NASCAR.
