Golden Nugget Online Gaming to Go Public on Nasdaq

1 Jul 2020

Golden Nugget Online Gaming (GNOG) has announced a $745M acquisition agreement with Landcadia II as it heads for going public on Nasdaq Exchange. This will make GNOG the second publicly listed online gaming company in the US after DraftKings.

The burgeoning online casino division of Golden Nugget owned by Landry’s Incorporated announced the deal with Landcadia II, a blank check special purpose acquisition company. When the deal is officially signed, the two merged companies will use GNOG as their Nasdaq ticker symbol in Q3, 2020.

In the purchase agreement, GNOG was valued at approximately $745M, or 6.1 times GNOG’s estimated 2021 revenue of $122M. The agreed amount is to be settled in cash and rollover equity in Landcadia II. Landcadia II will also take up $150m of GNOG debt.

By the time the deal is penned, the merged company will have at least $80M on its balance sheet, having paid the purchase price, debts, and transaction fees. The company will also have an anticipated pro forma equity market capitalization of nearly $700M.

Tilman Fertitta, the current CEO of GNOG, will remain in his current position as the CEO and chairman of the merged company, whereas Thomas Winter will retain his position as the company president.

Landcadia II co-chairman Rich Handle stated that GNOG was one of the best-positioned companies to invest in as the deal will be a huge breakthrough to online gaming in the US.

In the fiscal year 2019, the net generated earnings for GNOG were reportedly over $11M, having started its operations back in 2013 in New Jersey.

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