Sportech-linked group in talks to acquire DraftDay
Canada-based investment group on brink of acquiring US fantasy sports operator from MGT Capital
A Canadian investment group is in advanced talks to acquire US daily fantasy sports (DFS) operator DraftDay and its related assets from MGT Capital Investments in a deal worth around $7m, eGR North America understands.
According to eGR NA sources, should a deal transpire the unnamed investment group would then enlist UK headquartered firm Sportech to take on the operation of the DFS business.
It is understood negotiations have reached such a detailed stage that MGT could be in the position to release a statement to the market later today.
Global finance and banking group Macquarie Capital is thought to be raising capital for the deal with Sportechâs potential involvement understood to have played a major role in alleviating any regulatory concerns held by investors.
It is not yet known whether Sportech will put up any capital in order to secure a deal.
Canadian gaming giant Amaya Gaming had previously been linked with a move for DraftDay but it is thought negotiations stalled over a reported $10m asking price.
DraftDay is widely regarded as the third biggest DFS operator in the US behind the leading pair of FanDuel and Draft Kings, who between them hold a 95% share of the market.
MGT acquired New York-based DraftDay for US$600,000 plus stock options in April 2014.