Wynn Interactive, a subsidiary of Wynn Resorts, will merge with Austerlitz Acquisition Corporation I SPV to form an independent public company and be listed on the NASDAQ stock exchange. Following the merger, the combined company is expected to be valued at approximately $ 3.2 billion.
Wynn Interactive is on track to become an Independent Public Company
Wynn Resorts announced on Monday that concluded a definitive agreement with Austerlitz Acquisition Corporation I which is headed and founded by William P. Foley II. Under the agreement, Austerlitz, which is a special purpose vehicle (SPAC), will merge with its subsidiary Wynn Wynn Interactive to create independent public company . The newly merged company will retain the Wynn Interactive name following the proposed transaction. In addition, the combined company will list its shares again under the new ticker symbol WBET on the NASDAQ exchange .
" We are confident that this deal will unlock Wynn Interactive's enormous potential to further accelerate growth and enable the company to seize tremendous opportunities in North America. "
Matt Maddox, CEO, Wynn Resort
Wynn Interactive currently offers sports betting and casino entertainment to clients in the US and UK. At the moment, the company has market access to 15 US states and it reaches an approximately 51% population. Moreover, it is expectedthat Wynn Interactive will soon gain access to more states which will consolidate its presence in the US, reaching around 77% in the population.
The transaction has already started for approval by Austerlitz shareholders
Upon completion of the transaction, the combined company is expected to have enterprise value of approximately $ 3.2 billion. This translates to 4.5 times the projected 2,023 revenue of Wynn Interactive. Additionally, after closing the transaction Cannae Holding withhold redemption of shares, which will ensure the availability of cash proceeds. As a result, there will be approx $ 640 million in cash , which will be available to finance the operations of the combined company as well as existing development initiatives.
Existing shareholders of Wynn Interactive after the completion of the transaction will retain equity interest of approximately 79% of the companyincluding 58% equity stake by Wynn Resorts. Another 18% will go to the shareholders of Austerlitz I, and approximately 3% will go to sponsor Austerlitz I.
Business cooperation has been unanimously approved by the boards Wynn Resorts and Austerlitz. In addition, the transaction is expected to be completed by the end of this year. With that in mind, it is expected approval from the shareholders of Austerlitz as well as the relevant Gaming Regulators.
Wynn Interactive becomes a leader in the North American sports betting market
CEO and President of Wynn Resorts Interactive Matt Maddox , shared his excitement saying that this deal will unlock the potential of Wynn Interactive. Consequently, in his opinion, this process will accelerate the company's development and help in its expansion in North America. Finally, Maddox admitted that Bill Foley is undoubtedly the perfect partner to help ensure Wynn Interactive's continued success as the company continues to grow.
Craig Billings , the president and CEO of Wynn Interactive also shared his excitement. He admitted that thanks to his relentless focus on product features, user experience and customer service Wynn Interactive is rapidly gaining a leadership position in dollars, the 45 billionth North American online sports betting market. In addition, he said the company is looking forward to working with Austerlitz I and Bill Foley.
" I am excited to be a partner and future owner of Wynn Interactive. "
William P. Foley, II, founder of Austerlitz I
Founder of Austerlitz I, William P. Foley II said it is excited to be a partner and future owner Wynn Interactive. The Wynn is a leading brand in the gaming and luxury resort industry, he said. In addition, Foley said Austerlitz believes the investment in Wynn Interactive " meets the criteria for the type of company and management team we like to co-invest with ". Foley said he was optimistic about the future of the US sports betting and casino market . Overall, he said he is confident in Mr. Maddox's and Wynn Interactive's team's ability to execute a future business plan that will exceed the financial forecasts of the market.