DraftKings is eyeing up significant cross-selling opportunities after completing the acquisition of lottery reseller app Jackpocket for $750 million.
DraftKings announced a deal to diversify into the lottery market in February, with approximately $412 million of the acquisition price paid in cash and the remainder in DraftKings shares.
“Today we are announcing the completion of our acquisition of Jackpocket, and the commencement of our value creation plan,” said DraftKings CEO and co-founder Jason Robins. “We are well-prepared to quickly launch cross-sell programs, further improve customer acquisition efficiency, and continue to innovate and differentiate with our overall product portfolio for our customers.
“We look forward to continuing to deliver enhanced value to our customers and shareholders as we integrate Jackpocket into the DraftKings ecosystem.”
Following completion, DraftKings said it is focused on integrating Jackpocket into its operations and leveraging synergies to drive sustained growth and value creation.
“The completion of the acquisition represents an exciting new chapter for Jackpocket and DraftKings alike,” said Jackpocket CEO Peter Sullivan. “Together, we are confident that we will be even more capable of helping lotteries fulfill their mission of delivering revenue back to the beneficiaries they support.
“DraftKings’ proven reach and cutting-edge mobile platforms will continue to allow us to drive growth and innovation in the digital lottery vertical.”
Shares in DraftKings Inc (NASDAQ:DKNG) closed 3.41 per cent lower at $41.90 per share in New York Wednesday.