STAFF at daily fantasy sports firm FanDuel’s Scottish bases could find themselves working under new owners in the near future after it was revealed that the firm’s private equity backers are seeking to exit the business.
According to a report from US research firm Eilers & Krejcik Gaming, FanDuel’s backers, who are led by private equity giant KKR, are actively searching for a buyer for the business.
The report states that, along with rival and former merger partner DraftKings, “FanDuel [is] said to be pounding the fundraising pavement” and has received interest from a number of parties.
According to US press reports, Platinum Eagle Acquisition Corp, a so-called blank cheque company that is listed on the NASDAQ Stock Market, is one of the frontrunners looking to do a deal. Having listed on the exchange at the beginning of this year, Platinum Eagle described itself in its prospectus as being “formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses”.
If FanDuel was to be acquired by Platinum Eagle it would effectively reverse into the company, taking its stock market listing in the process.
FanDuel was founded in Edinburgh by a five-strong team led by former chief executive Nigel Eccles, but is now headquartered in the US, where most of its business is conducted. It still employs 140 mainly technology-focused staff across its bases in Edinburgh and Glasgow.
Since abandoning the DraftKings deal and handing more equity to the firm’s backers, FanDuel’s founders have all left the business.
FanDuel declined to comment.
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