Rush Street Interactive set to go public on NYSE28th July 2020 9:10 am GMT
Rush Street Interactive, the online betting and gaming arm of Rivers Casino operator Rush Street, has announced plans to combine with New York-listed special purpose acquisition company dMY Technology Group.
The definitive agreement will see Rush Street Interactive (RSI) combine with dMY to become a publicly listed company on the New York Stock Exchange under the Rush Street Interactive name and RSI trading symbol.
The combined company is anticipated to have an initial enterprise value of approximately $1.78bn, with online betting and gaming operations in Illinois, Pennsylvania, New Jersey, Indiana, and Colorado under the BetRivers and SugarHouse brands.
RSI also operates in the regulated Colombian online gaming market as Rushbet.co.
The New York-listed business will continue to be led by Rush Street founders Neil Bluhm and Greg Carlin as chairman and chief executive officer respectively, with Richard Schwartz continuing to serve as president. They will be joined on the board of directors by dMY chairman Harry You and CEO Niccolo de Masi.
“We started RSI in 2012 to create a fun and engaging online experience for the U.S. gaming customer and we now have a great opportunity to accelerate our growth in this dynamic market,” said Carlin. “We are looking forward to investing further in market expansion, product innovation, and growing our talented team.”
The transaction values the combined business at approximately $1.78bn or 5.6x RSI’s projected 2021 revenue of $320m, and is expected to deliver gross cash proceeds of $390m, including $160m in PIPE investment led by Fidelity Management and Research Company at $10.00 per share.
Commenting on the business combination, RSI president Richard Schwartz said: “RSI has achieved leading online casino and sportsbook market positions by focusing on what players want – a high-quality product, helpful customer service, and transparency and honesty.
“This transaction will help enhance and broaden our product offerings and attract more players.”
The transaction is expected to close before the end of the year, subject to customary closing conditions.