DraftKings Results Presentation Deck
5 PROPOSED TRANSACTION SUMMARY
Note:
(1)
(2)
EN MIDOÑO
(3)
(4)
(5)
(6)
DRAFT
KINGS
(8
Diamond Eagle Acquisition Corp. is a publicly listed special
purpose acquisition vehicle with over $400 million in cash
DraftKings may increase the PIPE size between transaction announcement and close.
Cash held in the trust account as of September 30, 2019.
Includes $67 million in DK convertible notes that convert to PIPE shares. This amount does not count
toward the determination of the satisfaction of the Minimum Proceeds Condition under the BCA.
Figures may not foot due to rounding. Assumes no redemptions from DEAC's trust account.
Represents SBT cash consideration converted to USD at 1.098 USD/EUR.
Represents total seller equity value including value of outstanding vested options.
Includes 80,000 founder shares that have been transferred to DEAC's independent directors
(7) Includes $14.0 million in deferred underwriting commissions related to DEAC's initial public offering.
Excludes DEAC warrants and earnout shares.
DEAC has agreed to combine with DraftKings and SBTech
Values the combined DK and SBT business at $2.7 billion
(based on book value of DEAC)
Represents an attractive entry multiple of 3.9x 2021E revenue;
projected annual revenue growth of 30% + as states legalize
and launch sports betting and iGaming
DK founders and shareholders are rolling 100% of their equity;
SBT shareholders are rolling ~$450 million of equity
Post-closing, the combined company will have a dual class
shareholder structure with super voting rights comprised of Class A
common stock, which will carry one vote per share, and Class B
common stock, which will carry 10 votes per share. Jason Robins
will hold Class A and Class B common stock such that he will hold
approximately 90% of voting power.
Concurrent with this transaction, DK and DEAC have raised $372
million (2) in committed PIPE equity from select investors
After giving effect to the transaction (assuming no redemptions),
the company will have over $500 million of unrestricted cash with
public equity currency to ensure access to capital to fuel growth
SBTech
we know sports
($ in millions)
Sources
DEAC Cash in Trust(1)
PIPE Investment (2)
Sellers' Equity (5)
ILLUSTRATIVE SOURCES AND USES (3)
SPAC Upfront Founder Equity (6)
Total
74%
14%
$403
12%
372
2,700
37
Uses
Cash to Balance Sheet
Cash to SBT Shareholders (4)
Sellers' Equity (5)
SPAC Upfront Founder Equity(6)
Transaction Fees (7)
$3,512 Total
ILLUSTRATIVE PRO FORMA OWNERSHIP AT CLOSE (3), (8)
$527
PIPE Investors
2,700
198
| 24
37
$3,512
50
Sellers' Rollover Equity
SPAC ShareholdersView entire presentation