Sports betting company DraftKings Inc. is going public in a sale that the company says will give it a market value of around $3.3 billion.
The Boston-based company reached an agreement with Diamond Eagle Acquisition Corp., a special purpose acquisition company, and SBTech, a leader in gaming technology to combine the firms into one company. DraftKings says the deal is expected to close in the first half of next year.
Diamond Eagle, set up by Hollywood executive turned serial dealmaker Jeff Sagansky, will change its name to DraftKings Inc. and trade under a new ticker. The new company will continue to be led by DraftKings co-founder and current Chief Executive Officer Jason Robins.
DraftKings was founded in 2011 as a fantasy sports company. Its earlier investors include the Raine Group, and the owners of the New England Patriots.