Genius Sports Goes Public

  • Genius Sports Group will now be a part of the New York Stock exchange once a deal with dMY Technology Group has been finalized.
  • The partnership, which will result in the new company NewCo, is being valued at $1.5 billion.
  • NewCo is expected to open after the first quarter of 2021 once all paperwork is finished for the merger.

NEW YORK – Genius Sports Group (GSG) has announced its partnership deal with dMY Technology Group (dMY II) that will now make the sporting statistic company a public one as dMY is a part of the New York Stock Exchange (NYSE).

The combining of these two businesses is said to be worth an estimated $1.5 billion.

This is a great move for both sides as they will now be able to wipe their slates clean as far as any debts are concerned with each balancing the other out, allowing them to move forward and focus on further business expansions worldwide.

The Combination Company

This agreement, once all of the pieces are in place, will create the company “NewCo” which is a combination of both businesses geared toward the ever-growing legal sports betting industry around the globe.

NewCo will allow shareholders from both of the original businesses to switch their shares over to NewCo when it officially becomes part of the NYSE. The combined company is expected to have $150 million in growth capital right from the start.

“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 Mark Locke, the future CEO of NewCo. “This transaction will help us continue to expand and strengthen our position as a nexus of the global sports, betting and media ecosystem.”

 

“Elemental data provider Genius Sports Group benefits from the growth of all participants in the global sports betting market. Mark Locke has pioneered the provision of official rights and live data which have been instrumental in building the modern sports betting market,” said Niccolo de Masi, dMY II’s CEO and member of NewCo’s Board of Directors. “The company has a strong track record of growth and we are very excited by the opportunities for further expansion in this rapidly growing segment.”

The Future Of This Transaction

NewCo is being valued at $1.5 billion before it’s even opened up for business. That number is eight times the estimated revenue profits that Genius Sports Group was expecting to bring in for 2021.

The company projected $190 million of revenue on its own prior to the merger.

Any shareholders invested in GSG will be receiving both cash and equity in NewCo when the deal is finalized and NewCo is ready to be unveiled to the public.

Within the contracts are a certain number of stipulations. One is the setting aside of $330 million for private investments (PIPE) which will pay off any loans and existing debts. This will need to be approved by stockholders of dMY II before any finalizations can be made.

NewCo is expected to roll out to the NYSE after the first quarter of 2021 when the partnership should become official and the revenue is projected to soar higher as a combined business than either was making on their own.

News tags: | | | | | | | |