Rush Street Interactive in Talks to List Via DMY Merger
(Bloomberg) -- Gaming technology operator Rush Street Interactive is in talks to go public through a merger with blank-check company dMY Technology Group Inc., according to people familiar with the matter.
Special purpose acquisition company, dMy, is led by former EMC Corp. executive Harry You and former Glu Mobile Inc. Chief Executive Officer Niccolo de Masi. It’s seeking to raise additional equity as part of the deal and has begun conversations with potential investors to raise more than $150 million, the people said, who asked not to be identified because the talks are private.
Shares of dMY, which raised $230 million in a February initial public offering, climbed as much as 9% in early New York trading Friday. They were up 3.4% to $11.22 apiece at 9:34 a.m.
Rush Street Interactive, founded in 2012, is the digital gambling unit of Chicago-based casino operator Rush Street. It operates a regulated gaming platform in New Jersey and also runs social casino websites and online sportsbooks in Pennsylvania, Colorado, Indiana and Illinois.
It would follow in the footsteps of larger online betting rival DraftKings Inc., which merged with a SPAC and listed shares in April. The stock has more than doubled since its debut.
A deal could be reached within a few days, the people said. As with any deal that hasn’t been finalized, it’s possible talks could collapse. DMY previously said it would aim to buy mobile companies valued at $500 million to $1.5 billion.
Representatives for Rush Street Interactive and dMY didn’t respond to requests for comment.
Since the onset of the coronavirus pandemic and ensuing market tumult and volatility, merging with a SPAC has become an increasingly popular way for closely held companies to go public. Businesses from potato chip maker Utz Quality Foods to electric car ventures Fisker Inc. and Nikola Corp. have each announced deals with blank-check companies.
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