Special Purpose Acquisition Company dMY Technology Group has completed its combination with Rush Street Interactive.
On 30 December, the Special Purpose Acquisition Company dMY Technology Group completed its combination with Rush Street Interactive (RSI), paving the way for RSI to trade its shares on the New York Stock Exchange (NYSE).
The deal was first announced in July 2020 and dMY shareholders approved the deal at a shareholder meeting held on 29 December.
dMY completes Rush Street combination
Following the completion of the combination, RSI began trading its shares on the NYSE on 30 December under the new stock ticker “RSI.”
The transaction raised approximately $230m in cash proceeds held in trust by dMY and approximately $160m from a private investment in public equity, led by Fidelity Management and Research Company at $10.00 per share of dMY common stock.
After payments were made to redeem equity from existing Rush Street equity holders, transaction fees and expenses were paid, the new business entity holds over $240m in cash.
The funds will be used to help accelerate growth in the US and other international markets.
Speaking on the deal, Greg Carlin, chief executive officer of RSI, said: “Today marks a momentous milestone for RSI as we enter the public markets with a tremendous opportunity ahead of us.
“With online casino and online sports betting still in the early stages in the United States, we believe there is significant growth potential for our business in both existing and new markets. Our steadfast focus on customer experience and broad demographic reach, combined with our proprietary technology platform, provide us with what we believe are material advantages to further our leadership position as online gaming continues to mature.”
dMY Technology Group CEO Niccolo de Masi said: “Through RSI’s differentiated offerings and loyal user base driven by strong player trust and engagement, we believe RSI is ideally positioned to capitalize on the rapid growth in online casino and online sports betting.
“RSI is firmly committed to operational excellence, and we believe it has the best product, the best tech platform and the best customer service in the market.”
Jeffries and Oakvale Capital acted as co-lead capital markets and financial advisor to RSI while Kirkland & Ellis acted as legal advisor.
Rush Street in the US
RSI currently operates two online gambling brands, the sports betting brand BetRivers and the PlaySugarHouse online casino and with the completion of the combination, the new business entity will be able to accelerate US expansion.
Rush Street currently has a presence in New Jersey, Colorado, Pennsylvania, Indiana, Illinois and Iowa, as well as Colombia. The online gambling operator has also secured market access for online gambling operations in three other US states, including New York.