Shares of Golden Nugget Online Gaming, Inc. (Nasdaq: GNOG) are up pre-market Monday after news that DraftKings (Nasdaq: DKNG) will acquire the company for around $ 1.56 billion.

The definitive agreement covers an all stock transaction. As a result, Golden Nugget Online Gaming shareholders will receive 0.365 New DraftKings Class A common shares for each Golden Nugget Online Gaming share they own.

“The acquisition will allow DraftKings to leverage the well-known Golden Nugget brand, iGaming product experience and existing combined database of more than 5 million customers,” said a statement from DraftKings.

As part of the acquisition, DraftKings entered into a commercial agreement with Fertitta Entertainment, the parent company of the Houston Rockets, Golden Nugget, LLC and Landry’s LLC.

“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a larger consumer base, including loyal Golden Nugget“ iGaming-first ”customers, Jason Robins said. , CEO and Chairman of DraftKings. Of the Board.

“This agreement creates significant synergies such as increasing the company’s combined revenue through additional cross-selling opportunities, loyalty integrations and technology-driven product expansion, as well as technology optimization. and greater marketing efficiency. We look forward to Tilman being an active member of our board of directors and one of our major shareholders, ”added Robins.

GNOG’s share price jumped 54.85% to $ 19 before market. The DraftKings share price is trading at $ 53.70, up 4.09% before the opening bell.

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