Shares of Golden Nugget Online Gaming, Inc. (Nasdaq: GNOG) are surging premarket on Monday after the announcement that DraftKings (Nasdaq: DKNG) is to acquire the company for approximately $1.56 billion.
The definitive agreement is for an all-stock transaction. Accordingly, Golden Nugget Online Gaming stockholders will receive 0.365 shares of New DraftKings’ Class A Common Stock for each share of Golden Nugget Online Gaming they hold.
“The acquisition will enable DraftKings to leverage Golden Nugget’s well-known brand, iGaming product experience and existing combined database of more than 5 million customers,” a statement from DraftKings read.
In connection with the acquisition, DraftKings has entered into a commercial agreement with Fertitta Entertainment, the parent company of the Houston Rockets, Golden Nugget, LLC and Landry’s LLC.
“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers,” said Jason Robins, DraftKings’ CEO and Chairman of the Board.
“This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies. We look forward to Tilman being an active member of our Board and one of our largest shareholders,” Robins added.
GNOG's share price has surged 54.85% to $19 premarket. DraftKings share price is trading at $53.70, up 4.09% ahead of the opening bell.
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