DraftKings delays public listing of stock, but says it remains on track

DraftKings is headquartered in Boston.
DraftKings is headquartered in Boston.Charles Krupa/Associated Press

The Boston sports-betting firm DraftKings will wait another few weeks to go public.

The company was poised to have its stock listed publicly as soon as next week, following a key shareholder vote that had been set for Thursday on a merger of DraftKings and two other companies. But that vote is now scheduled for April 23. .

The company is going public without a traditional IPO through the merger, which involves one company that is already publicly traded. That company, Diamond Eagle Acquisition Corp., was formed for the purpose of financing such a deal. The other one, SBTech, is a European company that makes technology for digital sports books.


Once the transaction is complete, the combined company will assume the name DraftKings and retain its leadership team and Boston headquarters.

SBTech was hit March 27 with a ransomware cyberattack that caused it to shut down its data centers, and interrupted service to its clients. Following that, DraftKings and the other companies amended their agreement to require the sellers of SBTech to put $30 million aside to pay out any potential settlements with clients whose businesses were affected by the outage.

DraftKings has said the combined company would be valued at $3.3 billion and have $500 million on hand as it seeks to expand its position in what ― before the economic uncertainty surrounding COVID-19 ― had been a fast-growing field.

In a statement, the company said it remains “on track to close in April.” The statement said the delay was because of the logistical challenges of carrying out the process in the face of " COVID-19 restrictions that continue to evolve."

Andy Rosen can be reached at andrew.rosen@globe.com. Follow him on Twitter @andyrosen.