DraftKings Inc. (NasdaqGS:DKNG) submitted a bid to acquire PointsBet USA Inc. from PointsBet Holdings Limited (ASX:PBH) for $195 million on June 15, 2023. The transaction is on a debt-free and cash-free basis. The Proposed Transaction will not be subject to any financing condition, as DraftKings would complete the Proposed Transaction using cash from its balance sheet.

DraftKings expects that customary regulatory approvals, including the approval of gaming regulators in relevant U.S. jurisdictions, will be required in connection with the Proposed Transaction. DraftKings’ entry into definitive agreements will be subject to the satisfactory completion of our reasonable due diligence, the negotiation of mutually acceptable transaction documentation and final internal approvals. Subject to the outcome of the review being undertaken of the DraftKings Proposal, the Board continues to recommend that Shareholders vote in favour of the FBG Transaction.

Due diligence could be completed and definitive agreements executed in approximately three weeks. BofA Securities and The Raine Group acted as financial advisor to DraftKings. Sullivan & Cromwell LLP acted as legal advisor to DraftKings.