Online casino and sports betting operator Rush Street Interactive (RSI) and blank-check company dMY Technology Group have announced that they have entered into a definitive merger agreement.
As a result of the transaction, RSI will become a publicly listed company on the New York Stock Exchange and the combined company is anticipated to have an initial enterprise value of approximately $1.78 billion. Upon closing, dMY intends to change its name to Rush Street Interactive, Inc. and its NYSE trading symbol to “RSI.”
Following the closing of the transaction, Neil Bluhm will continue to serve as Chairman of the Board of Directors, Greg Carlin will continue to serve as CEO, and Richard Schwartz will continue to serve as President of the combined company. The combined company’s Board of Directors will include dMY’s Chairman Harry You and CEO Niccolo de Masi.
“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,” Mr. Carlin said.
“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,” Mr. Schwartz said.
“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,” Mr. Bluhm said.
“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,” Mr. de Masi said.
The transaction values the combined company at an anticipated initial enterprise value of approximately $1.78 billion, or 5.6x RSI’s projected 2021 revenue of $320 million.