Genius Sports Files ISO Statement with SEC, Awaits $1.5 Billion Merger Approval

Genius Sports has filed an ISO statement with SEC to merge with dMY II and go public with its new holding company Galileo NewCo.

Shareholders Have Approved the Merger

Betting data supplier Genius Sports Group and special-purpose acquisition company dMY Technology Group II’s anticipated $1.5 billion merger agreement will form Galileo NewCo, a new holding entity, allowing the betting data provider to start trading on the New York Stock Exchange (NYSE).

Genius Sports has filed an IPO statement with the US Securities and Exchange Commission (SEC) to inform SEC of its plan to merge with dMY II. The SEC filing was registered by the new entity, Galileo NewCo (NewCo), which confirms the transaction was approved by Genius Sports and dMY II shareholders.

Should SEC approve the merger, the new business entity would go public on the NYSE under the symbol GENI. Following the closing of the deal, dMY II would become NewCo’s subsidiary.

Investors to Purchase $330 Million Shares

The $1.5 billion deal is funded by dMY II’s trust account, with $276 million, and a group of investors, institutional and accredited, who will purchase a combined 33 million shares in NewCo, at $10 per share, for $330 million in total. The transactions will be realized via a private investment in public equity (PIPE).

Mark Locke, Genius Sports Group’s current CEO will keep the same role in NewCo, while dMY Chairman Harry You and CEO Niccolo de Masi will be directors of the new entity.

$145 Million Revenue Expected for 2020

Genius Sports announced its expects to generate $145 million in revenue for 2020. It shared that during the first nine months of the year, revenue went up 32% compared to the same period in 2019 and that all aspects of the group have experienced growth despite the economic pressure on businesses during the pandemic.

Media technology income increased by 96% via acquisitions in Europe and the US. Betting technology revenue jumped by 26%, as sports technology revenue went up 16%.

As most of Genius Sports’ income is generated through long-term contracts with secured minimum installments, and with the growth rate of its expenses expected to slow down, the group said it is confident in its future. The group said it expects $190 million in revenues for 2021 and $238 million in 2022.

“Amidst a global pandemic, we have made great progress in 2020 and are on track for sustained strong performance in 2021. Looking ahead, our anticipated merger with dMY II and NYSE listing will strengthen our position as a true partner to sports leagues, sportsbooks and media groups worldwide.”

Mark Locke, Genius Sports Group CEO

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