DraftKings has agreed a deal to acquire Sports IQ Analytics, a business that uses artificial intelligence and machine learning to provide software solutions to the online sports betting market.
Full details of the agreement have not been disclosed, with the acquisition having only been confirmed on LinkedIn by Sports IQ CEO Omer Dor. DraftKings has yet to comment on the news.
Based in Vancouver in Canada, Sports IQ supports companies with software for online sports betting. Solutions cover more than 12,000 events every year, offering access to hundreds of in-play markets.
“I’m excited for this next chapter in the Sports IQ Analytics journey,” Dor said. “In DraftKings, we join a team whose desire for winning and being the best matches our own.
“I feel privileged for the last six years, working alongside the incredible group of people that make the Sports IQ team. They are hardworking intelligent and passionate and I’m so excited that we get to bring our skills and energy to DraftKings.”
Dor leads Sports IQ with support from its co-founders. These include Matthew Belzberg, who was previously chief technology officer at Don Best Sports and is now chief information officer at Sports IQ.
Chief data officer at co-founder Jose Alfaro also spent time at Don Best Sports, working in R&D. Andrew Schwartz, another co-founder, serves as chairman of the business.
“I’m incredibly grateful to the phenomenal investors, advisors, partners and clients who supported our vision and provided guidance and experience in Sports IQ’s journey at every turn,” Dor said.
“I’d like to believe that every entrepreneur could only wish to be as lucky as I have been.”
DraftKings increases full-year guidance
The news comes in the wake of DraftKings announcing its Q1 results. These revealed a 52.7% year-on-year increase in revenue to $1.18bn (£941.6m/€1.09bn).
Other financial highlights include net loss reducing from $397.1m to $142.6m. In addition, adjusted EBITDA was transformed from a loss of $221.6m to a $22.4m gain.
Such was the impact of Q1 growth that DraftKings increased its full-year guidance. Revenue is now set to amount to between $4.80bn and $5.00bn, up from the initial range of $4.65bn to $4.90bn.
As for adjusted EBITDA, this is now forecast at between $460m and $540, compared to the earlier guidance of $410m to $550m, with a midpoint of $500m.
Q1 also saw further M&A activity from DraftKings. The company agreed to acquire lottery app Jackpocket for $750m. DraftKings expects to generate an additional $340m per year as a result of this deal.
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