DraftKings Inc.
DKNG,
+2.20%
said Monday it has entered an agreement to acquire Golden Nugget Online Gaming Inc.
GNOG,
+2.68%
in an all-stock deal valued at about $1.56 billion. The acquisition "will enable DraftKings to leverage Golden Nugget's well-known brand, iGaming product experience and existing combined database of more than 5 million customers," the sports betting company said in a statement. As part of the deal, DraftKings has entered a commercial agreement with Fertitta Entertainment Inc., the parent company of the Houston Rockets, Golden Nugget LLC and Landry's LLC, and a leader in the gaming, restaurant, hospitality, and sports entertainment industry, the company said in a statement. DraftKings is expecting the deal to generate $300 million in synergies at maturity. Under the terms of the deal, Golden Nugget shareholders will receive 0.365 DraftKings share per each share owned. The deal is expected to close in the first quarter of 2022. Golden Nugget shares soared 29% premarket, while DraftKings was down 2.7%.