Rush Street Interactive (RSI) announced Monday it entered into a definitive agreement with NYSE-traded dMY Technology Group for the merger of the two companies, upon the completion of which RSI will become a public listed company.
SPAC Deals Continue
The Boards of Directors of both the Special Purpose Acquisition Company (SPAC) dMY and Rush Street Interactive have already unanimously approved the transaction which estimates the initial market capitalization value of the new entity at $1.78 billion.
RSI’s Founder and Chairman of the Board of Directors, Neil Bluhm, will retain his position in the new company, together with current RSI’s CEO Greg Carlin and President Richard Schwarz. Neil Bluhm will also retain his controlling economic and voting interests after the deal is completed.
“This transaction with dMY Technology will provide RSI access to growth capital to allow for the expansion of the business in this fast-growing market and we expect it will serve our customers and investors well.”Neil Bluhm, Chairman of the Board of Directors, Rush Street Interactive
From dMY, Chairman Harry You and CEO Niccolo de Masi will join the Board of Directors of the combined entity. Former CEO of developer and publisher of mobile games for smartphones and tablets Glu Mobile, and current CEO of dMY, Niccolo de Masi expressed his delight at the upcoming merger and potential it will bring for the business.
“With their dozens of years of online casino and sports wagering experience, RSI has developed a leading customer-focused online gambling platform. Harry and I are tremendously excited about RSI’s positioning and the long-term growth opportunity they have in the expanding U.S. market.”Niccolo de Masi, CEO, dMY Technology Group
Rush Street Interactive is currently present in 5 US jurisdictions, Illinois, Pennsylvania, New Jersey, Indiana and Colorado. In Illinois, RSI’s BetRivers.com sports betting brand made history for Rivers Casino des Plains, making it the first to go live with mobile sports betting in the state.
“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.”Richard Schwartz, President, Rush Street Interactive
The company that was also the first to launch online sports wagering in 3 other states, Pennsylvania, Indiana and Colorado, started its first online gaming site, PlaySugarHouse.com, in 2016 in New Jersey. RSI is also launching an iOS version of its sports book later this year.
“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. We are looking forward to investing further in market expansion, product innovation, and growing our talented team.”Greg Carlin, CEO, Rush Street Interactive
The combination of RSI and dMY is expected to complete in 2020, subject to the approval of dMY’s shareholders and the receipt of certain regulatory approvals. Upon completion, the new company will retain the name of Rush Street Interactive, Inc. and dMY’s trading symbol will change accordingly.