Genius Sports Group has outlined plans to form a new holding company with dMY Technology with the hopes of going public on the New York Stock Exchange.
Genius Sports Group has announced plans to form Galileo NewCo, a new holding company, for its proposed business combination with dMY Technology Group II which will see the supplier go public on the New York Stock Exchange (NYSE).
This comes after dMY technology acquired Rush Street Interactive allowing the online gambling operator to go public on the NYSE.
Under the deal that was announced in October, Genius is set to merge with dMY Technology Group II, a special purpose acquisition company (SPAC), in order to go public on the NYSE.
Both companies’ boards have approved the deal, however, dMY’s shareholders still need to approve the deal.
However, the company has now revealed that dMY will become a subsidiary of Galileo which is based in Guernsey.
The deal will be partly funded by a group of investors and by $276m held in dMY’s trust account. These investors have agreed to purchase a combined 33m shares in Galileo NewCo at $10 each which will amount to $330m. This will be done through a common stock fully committed private investment.
Genius Sports’ current chief executive, Mark Locke, will hold the same role in the business while dMY’s chairman, Harry You, and the company’s chief executive, Niccolo de Masi, will sit on the board of directors.
In its announcement, Genius also explained that it expects to see revenue of $145m for the 2020 calendar year along with an adjusted EBITDA of approximately $14m.
Locke said: “Amidst a global pandemic, we have made great progress in 2020 and are on track for sustained strong performance in 2021. Looking ahead, our anticipated merger with dMY II and NYSE listing will strengthen our position as a true partner to sports leagues, sportsbooks and media groups worldwide.”
Genius’ most recent financial figures came from 2019, where the company made $114.6m, up 30.8% on 2018’s income. However, the company paid $89.3m in costs of revenue, leaving the business with $25.3m in profit in 2019.
This, combined with $61.5m in operating expenses left the supplier with a $36.2m operating loss in 2019, more than double the loss it recorded in 2018.