Wynn Interactive to go public
- Move would value Wynn Interactive at $3.2 billion
- Company bullish about entering more US states
- Current shareholders keep hold of 79% of the business
- Merger with Austerlitz facilitates stock move
Wynn Resorts has inked an agreement to make its interactive unit a separate public entity.
Austerlitz Acquisition Corp, which is controlled by Las Vegas Golden Nights owner Bill Foley, will add $640 million in cash to the tie-up, which values Wynn Interactive at $3.2 billion.
Wynn said its interactive arm – to be named WBET on the Nasdaq – was already active in 15 states, giving it access to around 51% of the United States population.
Expanding iGaming market
With online gambling regulation gathering pace, it estimates it will soon get market access in further states, meaning 77% of the country’s population could be exposed to Wynn Interactive services.
Matt Maddox, CEO of Wynn Resorts and Chairman of Wynn Interactive, said: “We are confident that this transaction will unlock the tremendous potential of Wynn Interactive to further accelerate growth and enable the business to capture the massive opportunity in North America.
“Bill Foley is the ideal partner to ensure continued success – his track record with business combinations, extensive experience growing marquee consumer brands and partnering to maximize value in businesses like ours will be invaluable as we continue scaling.”
Craig Billings, President and Executive Director of Wynn Interactive, added: “Wynn Interactive is rapidly establishing a leadership position in what will ultimately be a $45 billion North American online sports betting and iGaming market through our relentless focus on product features, user experience and customer service. We look forward to working with Bill Foley and Austerlitz I to support Wynn Interactive’s long-term growth,”
The deal allows Wynn Interactive to accelerate its plans with access to a new injection of capital.
The new company expects to have an enterprise value of approximately $3.2 billion, representing 4.5x Wynn Interactive’s projected 2023 revenue.
William P. Foley, II, Founder of Austerlitz I, commented, “I am excited to be a partner and future owner of Wynn Interactive. Wynn is the premier brand in gaming and luxury resorts and we believe our investment in Wynn Interactive fits the criteria for the type of company and management team with which we like to co-invest.
“I’m optimistic about the future of U.S. online casino gaming and sports betting and am confident in the ability of Matt and the Wynn Interactive team to execute the business plan and exceed their financial projections against what will be a massive addressable market.”