Casino and sports-betting operator and software developer Rush Street Interactive and acquisition company dMY Technology Group announced Monday a merger that will create a publicly traded company.
The new company is expected to have an initial value of roughly $1.78 billion, according to a joint release by the companies. By comparison, RSI projected revenues of $320 million in fiscal year 2021.
The company, which will be traded on the New York Stock Exchange, also expects to have more than $235 million in net cash upon the merger to “fund growth strategy.” dMY is currently traded on the NYSE. When the deal closes, dMY will change its name to Rush Street Interactive, Inc., and its NYSE trading symbol to RSI.
Founded by Neil Bluhm, Greg Carlin and Richard Schwartz in 2012, RSI has been called one of the fastest-growing online casino and sports-betting companies in the United States. It launched its first online casino site in 2016, PlaySugarHouse.com. The company has extended its reach as more states have legalized sports betting, with licenses currently in Colorado, Illinois, Indiana, New Jersey and Pennsylvania.
“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,” Carlin said in the statement. “We are looking forward to investing further in market expansion, product innovation, and growing our talented team.”
Current RSI shareholders will receive cash and rollover equity in dMY. Upon formation of the new RSI, Bluhm will remain board chairman, Carlin will continue as CEO, and Schwartz will remain as president.
–Field Level Media