The post Allwyn to Acquire Majority Stake in PrizePicks for $1.6bn appeared first on Vegas Slots Online News.
Price could grow substantially
Allwyn Entertainment is set to acquire a majority stake in daily fantasy sports (DFS) site PrizePicks for $1.6bn in cash, a sum that could rise to $4.15bn over the next three years if the platform hits specific performance targets. The Swiss-based Allwyn operates lotteries across the world, including in the UK and Illinois. It has agreed to take control of about 62.3% of the firm, which values PrizePicks at $2.5bn.
the largest operator of its kind in North America
PrizePicks has exploded in popularity in the DFS market in the past few years, with the press release on Monday stating that it is the largest operator of its kind in North America. One of its big drivers has been influencer marketing, with many young and influential content creators promoting the Atlanta-based platform.
Players can take part in tournaments where they battle against their peers by trying to predict how specific athletes will perform during their games.
Allwyn growing its presence
Allwyn believes the deal will allow it to enter the “strategically important sports and entertainment industry” in the US, which will help it expand outside of sole current presence in Illinois. It says it has the resources to allow PrizePicks to grow and innovate at a quicker rate.
The same management team will remain in place at PrizePicks; the executive team will hold on to some of their equity stake. The expectation is for the deal to close during the first half of next year, once it gets the necessary approvals.
Latest in a number of deals
Talking about the acquisition, Allwyn CEO Robert Chvátal remarked that this is the company’s biggest investment in the US and he remarked that PrizePicks is “an entrepreneurial company that is empowering a new generation” of sports fans.
acquiring a 51% stake in online gambling operator Novibet
This is the latest in a flurry of deals struck by Allwyn in the past couple of years. It bought a 70% stake last year in developer Instant Win Gaming and spent an initial €217m ($255m) acquiring a 51% stake in online gambling operator Novibet. It also struck a notable partnership earlier in February with Formula 1 and the McLaren team.
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