Technology investment fund MGT Capital Investments (MGT) has confirmed the sale of daily fantasy sports operator DraftDay to newly formed business Random Outcome USA for a deal value of approximately $7 million.
DraftDay, who are currently the third biggest US daily fantasy sports operator will be sold to its new venture owners, for $4 million cash and a further $3 million in future equity interest, which will be subject to performance conditions. MGT further announced that it had also attached its sports media business-to-business network as part of the acquisition deal.
Random Outcome has announced that DraftDay’s business operations will be managed by Sportech Digital a subsidiary of Sportech Plc.
Curtiss Wm. Krawetz, CEO of Random Outcome said, “Infusing a leading daily fantasy sports business with the capabilities and resources of an operator of Sportech’s caliber creates the dominant business-to-business player in the DFS space.”
Rich Roberts, President of Sportech Digital stated, “A focused daily fantasy sports business to be delivered on a B2B partnership basis to the regulated gaming industry has the potential to quickly disrupt the rapidly growing market.”