TheScore, a Toronto-based digital media and sports reporting company, has secured a $40 million private placement from Fengate Asset Management.
The company, which is publicly listed and traded on the Toronto Stock Exchange, will use put the funds toward the growth and development of its media and sports betting businesses. Fengate will acquire a convertible unsecured subordinated debenture of the company, which can typically be converted into stock after a specified period. TheScore is hoping to use its massive user base in North America to expand into the sports betting space.
The deal follows the launch of TheScore’s sports betting app, which went live in New Jersey over the summer.
“TheScore is focused on becoming a leader in mobile sports gaming in North America and this strategic investment significantly enhances our ability to execute on this plan,” said John Levy, founder and CEO of TheScore. “Fengate is recognized as a highly respected and experienced investor across North America, with significant expertise in the gaming industry. They are the perfect strategic investment partner as we launch our best-in-class mobile sportsbook in the United States.”
The deal follows the launch of TheScore’s sports betting app, which went live in New Jersey, in July. The new app allows users to bet by accessing pre-game and in-play betting across leagues like the NFL, NCAA Football, NBA, NCAA Basketball, MLB, and NHL, among others.
“TheScore Bet is a completely unique and ground-breaking mobile sports betting experience,” said Levy. “Our team has launched best-in-class sports betting app that’s also been seamlessly integrated with our market-leading media app. Millions of sports fans all over North America were already using TheScore, with many relying on our data and content to help inform their betting decisions.
RELATED: Samsung partners with Toronto-based theScore to provide sports news through Bixby
TheScore operates digital sports media products that deliver sports scores, data, and news through its platforms, including its mobile applications TheScore and TheScore esports.
In 2015, TheScore acquired fantasy sports game developer Swoopt, surpassing 10 million monthly active users, and launched a new eSports app. It was also included within the 2015 TSX Venture 50, a list of the top 50 companies on the TSX Venture Exchange. In December 2015, it launched QuickDraft, a daily fantasy sports game app, hosting daily public and private contests where players will be able to win monetary prizes. The company also raised an $8.5 million private placement in July 2018.
“We are excited by the opportunity to be partnering with TheScore and its entrepreneurial management team,” said Justin Catalano, managing director and group head of private equity at Fengate. “TheScore’s unique ability to integrate sports betting into their industry-leading mobile sports media platform makes this investment a strong addition to our growing private equity platform investing across North America.”
Image courtesy Wikimedia Commons