Tilman Fertitta-backed Golden Nugget spikes 55% after DraftKings agrees to buy it for $1.56 billion

Tilman Fertitta-backed Golden Nugget spikes 55% after DraftKings agrees to buy it for $1.56 billion

Shares of Golden Nugget Online Gaming spiked on Monday after the online casino specialist it will be acquired by DraftKings in an all-stock transaction worth approximately $1.56 billion. jumped as much as 55%, while rose 2%. The merging of two gaming giants further expands the realms of online casinos and iGaming, which Golden Nugget is known for, as well as fantasy sports betting, where DraftKing is a lead player. "Together, we can offer value to our combined customer base that is unparalleled," Tilman Fertitta, chair and CEO of Golden Nugget, said in a statement. "We believe that DraftKings is one of the leading players in this burgeoning space." The acquisition will allow DraftKings to use the leverage on Golden Nugget's more than five million customers. It will also deliver synergies of $300 million at maturity and boost the revenue of the combined companies thanks to cross-promotion opportunities. The deal, which has been approved by both companies, is expected to close in the first quarter of 2022. Under the agreement, Golden Nugget stockholders will receive 0.365 shares of DraftKings' Class A common stock for each share. Billionaire entrepreneur Fertitta, who owns 46% of Golden Nugget, agreed to continue to hold his