PlayUp SPAC Deal Thaws Icy US Sports Betting M&A Market
PlayUp is going public on the NASDAQ through a SPAC transaction. The sportsbook operator is valued at $350 million. It is 9.6 times fiscal 2022’s gross revenue of $36. 6 million, up 56% from $23.4 million in fiscal 2021.
IGAC signed a $70 million standby equity purchase agreement with Yorkville Advisors for additional cash after the transaction closes.
PlayUp SPAC deal is expected to provide PlayUp with access to fresh capital. Playup wants to bring the global online betting industry together into one app.
Goode declined to comment on the ongoing litigation concerning Mintas. Goode did not shy away from a question on discounted valuation.
PlayUp SPAC Deal Thaws Icy US Sports Betting M&A Market.
There is also the benefit to a SPAC deal compared to an IPO.
Churchill Downs announced it was exiting the online sports betting business in February. PointsBet is a popular name in these conversations. Fanatics announced a $1.5 billion raise in the month of February and it has no interest in US sports betters.
Handle jumped 89.2% to $402.7 million in fiscal 2022. Net revenue was $15.3 million, which was up from $ 15 million in the previous fiscal year. EBITDA was a loss of $25.9 million after $41.1 million of operating expenses.
PlayUp SPAC and IGAC are merging. Bradley Tusk will be the chairman of the combined company. Goode will take over as president of US business.
Goode praised Global CEO Daniel Simic for having his hand on the pulse. Goode and Simi's vision for the company align with Tusk and Goodes' in looking beyond just sports betting.
The technology platform could be a game changer for sports betting. It's proprietary tech and will allow people to bet on what they want where they choose.
PlayUp is live with sports betting in Colorado and New Jersey and horse racing betting on North Dakota. PlayUp has market access to 13 states, including iGaming in New York, Indiana, Iowa and Ohio. An Arizona sportsbook and Pennsylvania online casino are planned for 2024.
