Upon closing, NewCo expects its ordinary shares and warrants to trade on the NYSE under the symbols “GENI” and “GENI WS”, respectively.
In addition to the approximately US$276 million held in dMY II’s trust account (assuming no redemptions by dMY’s public stockholders), a group of institutional and experienced industry investors has committed to participate in the transaction through a common stock PIPE of approximately US$330 million at US$10.00 per share.
Mark Locke, CEO at Genius Sports, commented: “Today is a very proud day for Genius Sports Group and our team around the world as we announce our plans to list on The New York Stock Exchange as part of a US$1.5 billion deal with dMY Technology Group. A sincere thank you to everyone who has been on this journey and made our amazing success to date possible. We are hugely excited about the next chapter of the Genius Sports Group story. Sitting at the heart of the fast-growing global sports, betting and media ecosystem, our technology will power cutting-edge fan experiences for many years to come.”
Management & Governance
Following the closing of the proposed business combination, Mark Locke will continue to lead the business as Chief Executive Officer of NewCo. Mr. Locke will be supported by a deep bench of talent with substantial experience across finance, technology and the sports betting industry.
NewCo’s Board of Directors will include dMY II’s Chairman Harry You and dMY II’s CEO Niccolo de Masi.
“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 Locke. “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 Mr. de Masi. “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.”
Key Transaction Terms
The transaction values NewCo at an anticipated initial enterprise value of approximately US$1.5 billion, or 8.0x GSG’s currently projected 2021 revenue of US$190 million.
The consideration payable to GSG’s existing shareholders will consist of a combination of cash and rollover equity in NewCo. The proceeds of the US$330 million PIPE transaction will be used to repay shareholder loans and to redeem and make certain preference share payments on preferred shares held by corporate shareholders.
Assuming no redemptions by dMY II’s public stockholders, it is anticipated that NewCo will have approximately US$150 million of unrestricted cash and a substantially debt-free balance sheet at closing.
The Boards of Directors of both dMY II and GSG have unanimously approved the transaction, which will require the approval of dMY II’s stockholders, and is subject to other customary closing conditions, including a minimum cash condition. The transaction is expected to close in Q1 2021.
Source: GMB
