(RTTNews) - DraftKings Inc. (DKNG), a sports betting company, said on Friday that it has reached a deal to acquire Jackpocket, a provider of digital lottery services in the U.S., for around $750 million in a cash and and stock.
The deal consists of approximately $412.5 million in cash, and around $337.5 million of the company's class A common stock.
The transaction is expected to be closed by the second half of 2024.
DraftKings noted that the acquisition will enable it "to access and grow into the massive U.S. lottery industry, but more importantly strengthen its position in Sportsbook and iGaming through higher customer lifetime value - based on demonstrated cross-sell capabilities - and an enhanced customer acquisition engine."
DraftKings expects the acquisition to drive $260 million to $340 million of incremental revenue and $60 million to $100 million of incremental Adjusted EBITDA in fiscal year 2026.
In the post close trade, DKNG was down by 3.26 percent at $43.01 per share on the Nasdaq.
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