Under the agreement, GSG and dMY shareholders will exchange their holdings for shares in the combined business, which will be traded on the New York Stock Exchange (NYSE).
The combined entity’s ordinary shares and warrants will be listed on the NYSE under the symbols ‘GENI’ and ‘GENI WS’, respectively.
The consideration payable to GSG’s existing shareholders will consist of a combination of cash and rollover equity in the new business.
In addition to approximately $276m held in dMY’s trust account, a group of institutional investors will participate in the transaction through a common stock fully committed private investment (PIPE) of approximately $330m at $10 per share.
The proceeds from the PIPE transaction will be used to repay shareholder loans and redeem and make certain preference share payments on preferred shares held by corporate shareholders.
Mark Locke, currently the chief executive of GSG, will continue to serve in the role for the joint business.
dMY chairman Harry You and chief executive Niccolo de Masi will join the board of directors for the combined entity.
“GSG created the market for official data across all tiers of sports, helping fuel our sportsbook partners’ ever-increasing range of products,” said Locke. “This transaction will help us continue to expand and strengthen our position as a nexus of the global sports, betting, and media ecosystem.”
“Elemental data provider GSG benefits from the growth of all participants in the global sports betting market,” added de Masi. “Mark Locke has pioneered the provision of official rights and live data which have been instrumental in building the modern sports betting market.
“The company has a strong track record of growth and we are very excited about the opportunities for further expansion in this rapidly growing segment.”
The boards of both dMY and GSG have unanimously approved the transaction, but the deal still requires approval from dMY stockholders and is also subject to other customary closing conditions, including a minimum cash condition.
If the deal receives final approval, GSG and dMY anticipate completing the merger in the first quarter of 2021.
