Las Vegas-based Tekkorp Holdings has acquired a stake in Swedish B2B fantasy sports and betting provider Scout Gaming Group.

Tekkorp, the wagering and gaming industry investment firm controlled by former NYX Gaming chief executive Matt Davey, has acquired 431,129 shares in Scout for approximately US$1.0m, with the proceeds from the placement to be used to further strengthen Scout’s product offering and drive continued geographical expansion.

“Matt Davey and Tekkorp are Scout Gaming's optimal strategic partner in the position we are in,” said Scout Gaming chief executive Andreas Ternström. “He is one of the absolute most important names in the sector in the United States and will on several levels help to develop Scout ahead.

The placement at a price of SEK21.51 per share is expected to be settled by July 4th.

“We have observed Scout Gaming's development and are impressed with what they have achieved in a short time,” said Tekkorp CEO Matt Davey. “They are the leading supplier fantasy sports-related gaming products now facing an international expansion and we intend to support the company going forward.”

The company is also conducting a private placement of 818,871 shares through ABG Sundal Collier which is expected to deliver approximately SEK17.6m before transaction costs.

Shares in Scout Gaming Group AB (STO:SCOUT) fell 7.11 per cent to SEK22.20 per share in Stockholm Friday morning.