Benzinga | Jul 27, 2020 06:27AM EDT

Special Purpose Acquisition Company dMY Technology Group to Merge with Rush Street Interactive, An Online Gambling Company

Preeminent online gaming company Rush Street Interactive is a market leader in the U.S. online casino segment under the BetRivers and SugarHouse brands; top sports betting offering to roll out new sportsbook app this year

Combined company anticipated to have initial enterprise value of approximately $1.78 billion, plus an estimated over $235 million in net cash to fund growth strategy

Transactions include a $160 million committed PIPE at $10.00 per share led by Fidelity Management and Research Company

RSI projects approximately $320 million in revenue for 2021 fiscal year

RSI's majority shareholders, Neil Bluhm & Greg Carlin, will retain approximately 93% of their existing equity holdings in the combined company

Post-Closing, RSI will continue to be led by Neil Bluhm, Chairman & Co-Founder, Greg Carlin, CEO & Co-Founder, and Richard Schwartz, President & Co-Founder

Rush Street Interactive, LP ("RSI" or the "Company"), one of the fastest-growing online casino and sports wagering companies in the United States, and dMY Technology Group, Inc. (NYSE:DMYT, DMYT and DMYT WS))))) ("dMY"), a publicly traded special purpose acquisition company, today announced that they have entered into a definitive agreement pursuant to which RSI and dMY will combine. As a result of the transaction, RSI will become a publicly listed company on the New York Stock Exchange, and the combined company is anticipated to have an initial enterprise value of approximately $1.78 billion. Upon closing, dMY intends to change its name to Rush Street Interactive, Inc. and its NYSE trading symbol to "RSI."