Rush Street Interactive is in talks to become a public business through a merger with blank check group dMY Technology Group, people familiar with the matter told Bloomberg.
According to the sources, the special purpose acquisition company (SPAC) is looking to raise an additional USD 150.00 million in equity as part of the deal and has already started discussions with potential investors.
Founded in 2012, Rush Street Interactive is the digital gaming technology operator of Chicago-based casino group Rush Street.
The business operates a regulated platform in New Jersey and also runs social casino websites and online sportsbooks in Pennsylvania, Colorado, Indiana and Illinois.
dMY is led by former EMC executive Harry You and former Glu Mobile chief executive Niccolo de Masi.
The blank check group raised USD 230.00 million in an initial public offering in February and said it was seeking out mobile companies valued at between USD 500.00 million to USD 1.50 billion.
An announcement could be made in a few days, the insiders noted, asking not to be named as the situation is still private.
However, the people cautioned there is no guarantee of a transaction being reached.
Bloomberg observed that since the start of the Covid-19 pandemic, which caused market volatility, merging with a SPAC has become a popular choice for companies wanting to go public without going through the IPO process.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 2,272 deals involving other financial vehicles acquiring global companies announced in 2020 to date.
In the largest of these, a consortium of investors entered into an agreement to acquire a 49.0 per cent stake in ADNOC Gas Pipeline Assets from Abu Dhabi National Oil.
Global Infrastructure Partners, Brookfield Asset Management and Ontario Teachers’ Pension Plan Board, among others, paid USD 10.10 billion for the United Arab Emirates-based gas extraction services provider.
Other targets included 58.com, Polaris Parent, Industrial & Financial Systems and Nikola.
© Zephus Ltd