Wynn Resorts’ subsidiary, Wynn Interactive is to merge with special purpose acquisition company, Austerlitz Acquisition Corporation I to create an independent public company and list on the NASDAQ stock exchange. Once the merger is completed, the combined company is expected to have an enterprise value of approximately $3.2 billion.
Wynn Interactive Is on Its Way to Become an Independent Public Company
Wynn Resorts announced on Monday that it entered into a definitive agreement with Austerlitz Acquisition Corporation I, which is led and founded by William P. Foley II. Under the agreement, Austerlitz, which is a special purpose acquisition company (SPAC), will merge with Wynn’s subsidiary, Wynn Interactive, to create an independent public company. The newly combined company will keep the name Wynn Interactive, once the proposed transaction is completed. Furthermore, the combined company will relist its shares under a new ticker symbol WBET on the NASDAQ Stock Exchange.
“We are confident that this transaction will unlock the tremendous potential of Wynn Interactive to further accelerate growth and enable the business to capture the massive opportunity in North America.”Matt Maddox, CEO, Wynn Resort
Currently, Wynn Interactive offers sports betting and casino entertainment to customers around the US and the UK. For the moment, the company has market access to 15 US states and it reaches approximately 51% of the population. Furthermore, Wynn Interactive is expected to gain access to more states soon, which will solidify its presence in the US, reaching approximately 77% of the population.
The Transaction Is Yet to Be Approved by Austerlitz Stockholders
Once the transaction is completed, the combined company is expected to have an enterprise value of approximately $3.2 billion. This translates to 4.5 times the projected 2023 revenue for Wynn Interactive. Additionally, upon closing of the transaction, Cannae Holding will backstop share redemptions, which will assure the availability of cash proceeds. Consequently, there will be approximately $640 million in cash, which will be available to fund the combined company’s operations as well as the already existing growth initiatives.
Once the transaction is complete, current Wynn Interactive shareholders will retain an equity interest of approximately 79% of the company, inclusive of 58% equity interest by Wynn Resorts. Another 18% will go for Austerlitz I’s stockholders, and approximately 3% for Austerlitz I’s sponsor.
The business collaboration has been unanimously approved by the boards of directors of Wynn Resorts and Austerlitz. Furthermore, the transaction is expected to be completed by the end of this year. With that in mind, approval is pending from Austerlitz stockholders as well as the relevant gaming regulatory bodies.
Wynn Interactive to Become a Leader in the North American Sports Betting Market
Wynn Resorts’ CEO and chairman of Wynn Interactive, Matt Maddox, shared his excitement by saying that this transaction will unlock the potential of Wynn Interactive. Consequently, according to him, the process will accelerate the company’s growth and help expand in North America. Last but not least, Maddox acknowledged that Bill Foley is undoubtedly an ideal partner that will help ensure the continued success of Wynn Interactive, while the company continues to expand.
Craig Billings, president, and executive director of Wynn Interactive also shared his excitement. He acknowledged that through a relentless focus on product features, user experience, and customer service, Wynn Interactive is quickly establishing a leadership position in the $45 billion North American online sports betting market. Furthermore, he said that the company is looking forward to collaborating with Austerlitz I and Bill Foley.
“I am excited to be a partner and future owner of Wynn Interactive.”William P. Foley, II, founder, Austerlitz I
Austerlitz I’s founder, William P. Foley II, said that he is excited to be a partner and future owner of Wynn Interactive. He said that Wynn is a premier brand in gaming and luxury resorts. Furthermore, Foley said that Austerlitz believes that the investment in Wynn Interactive “fits the criteria for the type of company and management team with which we like to co-invest“. Foley said that he is optimistic about the future of the US sports betting and casino market. In conclusion, he said that he is confident in the abilities of Mr. Maddox and Wynn Interactive’s team to execute the future business plan which will result in exceeding the financial projections of the market.