Wynn Interactive, an online-focused subsidiary of Wynn Resorts, is to merge with special purpose acquisition company (SPAC) Austerlitz Acquisition Corporation I (Austerlitz I) and list on the Nasdaq stock exchange.
The combined company is estimated to have a post-transaction value of $3.2bn (£22.6bn/€26.3bn), a total 4.5 times the revenue projected by Wynn Interactive by 2023. Austerlitz will help fund the business with the $640m in cash that it currently holds.
Post-closing, the combined company will act under Wynn Interactive and will list its shares on the stock exchange under the ticker symbol WBET.
“Wynn Interactive is rapidly establishing a leadership position in what will ultimately be a $45 billion North American online sports betting and iGaming market through our relentless focus on product features, user experience and customer service,” said Craig Billings, president and executive director of Wynn Interactive.
The combination will see Matt Maddox continue to serve as chairman of Wynn Interactive, Billings will continue to serve as president and executive director and Austerlitz I founder William P. Foley II will serve as a director on the combined company’s board.
“We look forward to working with Bill Foley and Austerlitz I to support Wynn Interactive’s long-term growth.”
“I’m optimistic about the future of U.S. online casino gaming and sports betting and am confident in the ability of Matt and the Wynn Interactive team to execute the business plan and exceed their financial projections against what will be a massive addressable market,” said William P. Foley II.
The combination has been approved by both Wynn Resorts’ and Austerlitz I’s boards of directors, and is set to close by the end of 2021. After this, shareholders of Wynn Interactive will keep an estimated 79% of the merged company, which includes 58% held by Wynn Resorts. Austerlitz I’s shareholders will hold around 18%, while Austerlitz I’s sponsor will hold close to 3%.
Wynn Interactive is the latest online division of a land-based operator to go public through a merger with a special purpose acquisition company. Rush Street Interactive’s online division entered its own SPAC deal in January, with trading to begin on December 30.
In June 2020, Golden Nugget Online Gaming became the second online casino operator to be publicly traded on a US exchange.