Game developer Skillz Inc. is set to go public on New York Stock Exchange through a merger deal with a blank check company Flying Eagle Acquisition Corp. (FEAC)
A blank check company is also known as a special purpose acquisition company (SPAC) and it uses cash fetched from its initial public offering to purchase another company. Normally this happens between a span of two years.
Citing a joint statement from both companies, this transaction will value Skillz at $4.3 billion inclusive of about $850 million cash from investors.
Some of institutional investors which are investing in the deal include Neuberger Berman, Fidelity Investments and Franklin Templeton Investments. Collectively the three entities have agreed to invest over $159 million in the deal.
This will be the second blank check IPO held this year after another SPAC deal was agreed between Sagansky and Sloan earlier in the year.
Skillz is popular for creating games like Blackout Blitz, 21 Blitz and Solitaire Cube. The company was established eight years ago by Casey Chafkin and Andrew Paradise.