Despite a challenging market environment, Australian-based sports betting platform developer PlayUp signaled intentions to become a publicly traded company on NASDAQ after entering into a business combination agreement with IG Acquisition Corp.
The transaction with IGAC, a special purpose acquisition company (SPAC), will enable PlayUp to list on the NASDAQ via a newly formed Irish company. The transaction values PlayUp at $350 million. PlayUp’s gross revenue has grown about 56% year-over-year, the company said in a press release.
“PlayUp believes this transaction will enable us to continue investing in our proprietary technology and deliver on our aspirations to be the unrivaled entertainment and betting platform of the future,” PlayUp CEO Daniel Simic said in a statement.
Embracing new technologies
Simic will retain the title of global CEO of the combined company, while IGAC Chairman Bradley Tusk will become chairman of the combined company’s board. IGAC CEO Christian Goode, meanwhile, will serve as president of PlayUp’s U.S. business. Ultimately, Simic hopes to capitalize on an enhanced betting experience where players can engage in the company’s immersive betting products while embracing technologies such as virtual reality and augmented reality.
PlayUp has live online sports betting operations in two states, New Jersey and Colorado. PlayUp also has market access in two others, Indiana and Iowa.
Exciting day for @PlayUp_AU with the announcement of a SPAC and future Nasdaq listing.
Plenty of good things in the pipeline to come with this brand and happy to have played a small role in the growth and development to this point in time! https://t.co/UoAf339JEk
— Jarred Magnabosco (@MagnaDataTips) September 23, 2022
PlayUp may begin trading on NASDAQ early next year upon the close of the deal, which is expected in the first quarter of 2023.
While a host of sports betting-related companies pursued SPAC deals in early 2021, the environment has dried up in recent months. Facing a challenging regulatory landscape, SPAC IPOs are down 98% in terms of capital raised compared with peak levels in the first quarter of 2021, Bloomberg Law reported. More than 40 SPAC deals have been canceled this year, according to Bloomberg.
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