DraftKings To Acquire Golden Nugget Online Gaming – Quick Facts

DraftKings Inc. (DKNG) has agreed to acquire Golden Nugget Online Gaming, Inc. (GNOG) in an all-stock deal with an implied equity value of approximately $1.56 billion. Golden Nugget Online Gaming is an online gaming company and was first to bring Live Dealer and Live Casino Floor to the United States online gaming market. Tilman Fertitta, who owns beneficially approximately 46% of the equity in Golden Nugget, has agreed to continue to hold the DraftKings shares to be issued to him in the merger for a minimum of one year from the closing of the deal.

DraftKings said the acquisition will deliver significant strategic benefits as well as expected synergies of $300 million at maturity. DraftKings expects to see revenue uplift from additional cross-promotion opportunities.

As part of the deal, DraftKings will undergo a holding company reorganization and form a new holding company New DraftKings, which will become the going-forward public company for both DraftKings and Golden Nugget. New DraftKings will be renamed DraftKings Inc. at closing. Golden Nugget Online Gaming stockholders would receive a fixed ratio of 0.365 shares of New DraftKings’ class A common stock for each common share of Golden Nugget.

Also, DraftKings reached an agreement regarding a separate commercial deal with Fertitta Entertainment, Inc. across its asset portfolio, including the Houston Rockets, Golden Nugget, LLC and Landry’s LLC. Fertitta Entertainment, Inc. is the holding company through which Tilman Fertitta holds substantially all of his assets and the parent company of Golden Nugget/Landry’s.

Shares of Golden Nugget Online Gaming were up nearly 50% on Monday.

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