Data Company Genius Sports Going Public Via SPAC, Valued At $1.5 Billion

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Genius Sports SPAC

Genius Sports will list on the New York Stock Exchange in a reverse merger process that values the firm at more than $1.5 billion.

The data provider is merging with special purpose acquisition company dMY Technology Group Inc. II, with the deal expected to close in Q1 2021.

The combined company will run under the ticker $GENI.

The $1.5 billion price tag is equivalent to 8x Genius’ projected 2021 revenue of $190 million.

“Genius Sports Group created the market for official data across all tiers of sports, helping fuel our sportsbook partners’ ever-increasing range of products,” said Genius CEO Mark Locke. 

“This transaction will help us continue to expand and strengthen our position as a nexus of the global sports, betting and media ecosystem.”

Locke will remain CEO of the combined public company.

More deals for Genius Sports?

Following the transaction, the business will have around $150 million of growth capital on the balance sheet and “substantially” no debt.

Genius said the cash would be used to accelerate its US and international expansion through “organic growth and strategic acquisitions”.

Genius provides data on over 240,000 events each year and is the official provider for over 170,000 of these events.

In the US, it provides official data for NASCAR and the NCAA – although not for betting purposes for the NCAA.

Who is dMY?

The deal is the second gambling industry transaction in recent months for the dMY team.

Directors Niccolo de Masi and Harry You previously oversaw the $1.8 billion deal to take Rush Street Interactive public.

“Elemental data provider Genius Sports Group benefits from the growth of all participants in the global sports betting market,” said de Masi. 

SPAC takeover of US online gambling

Rush Street Interactive, DraftKings and Golden Nugget have all previously used, or are in the process of using, SPACs to go public.

And two new SPACs are also looking at potential acquisitions in the gambling industry.

Genius’ chief rival, Sportradar is also planning to acquire a company for around $350 million, and could go public after that.