MGT Capital Investments has entered into an asset purchase agreement with CardRunners Gaming to acquire the DraftDay fantasy sport business and software platform.
MGT will pay $0.6m in cash and approximately 100,000 shares of common stock to acquire the DraftDay assets.
It is the latest acquisition for MGT which recently expanded its online gaming portfolio with the purchases of virtual card dealing solution Real Deal Poker and social casino studio Avcom. The company plans to launch a new real-money skill games offering on MGTplay.com later this year, as well as a new social casino app SlotChamp.
MGT CEO Robert Ladd said: “This acquisition represents a unique financially compelling opportunity and tremendous complement to our online gaming businesses. DraftDay will elevate our fantasy sports segment to an entirely new level. We are very pleased to welcome the players and employees of DraftDay.”
DraftDay is one of the leading daily fantasy sports wagering sites, which also provides customers with a range of quick-pick style skill-based fantasy sports games.
“We have worked tirelessly to build an outstanding product and loyal player base,” said DraftDay co-founder Andrew Wiggins. “With MGT's support, DraftDay will have greater resources to grow this business to new heights. Our employees look forward to making MGT the market leader in daily fantasy sports.”
MGT's chief financial officer Robert Traversa said that combined with the recently initiated joint venture with Vegas Insider, the company expects the acquisition of DraftDay to be accretive to its operating results with MGT Sports projected to become cash flow positive by year-end.
Earlier this month, MGT entered into a revenue share agreement with sports news portal VegasInsider.com. Under the deal, MGT’s subsidiaries, FanTD (operator of FanThrowdown.com) and MGT Sports, will exclusively provide the technology infrastructure enabling VegasInsider.com to offer a self-branded daily fantasy sports platform to its user base.