Paddy Power Betfair is seeking to enter the US daily fantasy sports market with a million acquisition of Draft mobile.
New York-based Draft mobile—founded in 2010—is attempting to be a leader in the mobile DFS business and has reportedly raised about $6 million in venture capital.
Paddy Power Betfair confirmed that it has agreed to acquire the operator for a deal valued at $48 million. Paddy Power will pay an initial $19 million for all Draft related assets. The deal then calls for a further $29 million in performance related benchmarks to be earned within a four-year period of the acquisition.
Paddy Power Betfair CEO Breon Corcoran said the acquisition will allow the company to differentiate itself within the highly competitive US DFS market and could allow DRAFT to compete with industry giants FanDuel and DraftKings. Reports say Paddy Power Betfair is prepared to invest heavily in Draft.
