Q&A: Genius Sports Group CEO on taking the company public

Genius Sports Group is set to begin a new chapter on the New York Stock Exchange following a $1.5bn (£1.1bn) SPAC merger with US-based investment firm dMY Technology Group II. The SPAC, headed up by Niccolo de Masi and Harry You, added the sports data giant to its US-facing online gambling portfolio after sewing up a deal for Rush Street Interactive in July. Genius Sports Group is the latest gambling business to cash in on the hype surrounding the US sports betting sector with an IPO, alongside DraftKings, Golden Nugget, Esports Entertainment Group and more. Below, Genius Sports Group CEO Mark Locke discusses the M&A sector and outlines the advantages of using a SPAC to go public.

EGR Intel: What is the major advantage in taking the company public? Mark Locke (ML): The business has been through a really significant growth period over the last few years. The acquisition by Apax Partners two years ago was a really good move for us. Post that deal, the growth that we’ve seen has really propelled the business into a position where we are ready to take the next step. This new transaction is going to benefit growth on an organic basis as well as through acquisitions going forwards. EGR Intel: In which areas are you targeting M&A? ML: We’ve got a great history of acquiring and integrating businesses. As a technology business, we’ve got a high-quality platform that we can integrate partners into very quickly to drive revenue and shareholder value. We’re looking at the whole spectrum across the market, from small technology companies that have fantastic innovative products all the way through to larger acquisitions that are more transformational. We are incredibly well placed with the listing on the New York Stock Exchange and the cash on the balance sheet that we now have. EGR Intel: How long has Genius Sports intended to go public? ML: As a business we like to believe we have kept our eyes open and have always looked at the opportunities that have been presented to us. Any transaction we contemplated had to be right for the business and for our partners and employees. Niccolo de Masi and Harry You are the sponsors of the SPAC and they have a really good background and a great history. Oakvale Capital have advised us in a phenomenally successful way over the past few years and have really helped us to realise this opportunity. That combination has put us in a great position to achieve our next level of growth. EGR Intel: Why did you favour going down the SPAC route? ML: The SPAC is a fantastic thing. A traditional route to IPO is often very time consuming and distracts the business from its core goals and its partners and that is not something we wanted to do. A SPAC transaction allows us to focus on our core business and we can continue to deliver for our sportsbook partners. We’re not distracted but we still get the same benefits long term that you would from an IPO. EGR Intel: You are staying on as CEO but how will the rest of the executive team take shape? ML: We’ve got a fantastic executive team. They are all staying involved and are committed. This has been an unbelievable journey for all of us. I have absolute confidence in the team to meet the challenges that this next stage of growth is going to present to us. We’re all incredibly excited. EGR Intel: What are your personal feelings on such a significant day for Genius Sports? ML: This is the heart of what I’ve tried to achieve over the years. For me this is about the success that we as a team have managed to get. This is a big business, but we have come from very small and humble beginnings. We’ve managed to do that by keeping focused on our values.