FanDuel, fantasy sports firm has made its first acquisition with Kotikan, a mobile app developer for a surging $275 million raised through a funding round.
Founded in 2009, FanDuel is an everyday fantasy sports provider that provides a range of one-day game options for the NFL, MLB, NBA and NHL. It has more than 12,000 leagues open every day with more than $10 million in real cash prizes paid out every week. It is now an official partner of the NBA, that holds an equity stake in the company, however it also has deal in place with specific NFL and NBA teams. The company claims it has more than million paying gamers and $57 million in revenue in 2014.
The acquisition of Kotikan will help the company deliver apps that will help it go up against its rivals in the market. Founded in 2007, the Edinburgh-based Kotikan is a mobile app development company with manpower of 50 with $3.7 million turnover. This acquisition is more of a acqui-hire to FanDuel. Spokesperson from FanDuel said, “This is an acqui-hire where the entire Kotikan team has been offered roles at FanDuel. Kotikan’s team will work along with FanDuel’s prevailing team in Edinburgh, Glasgow, New York, Orlando and LA. The company is still looking out to recruit more people for their team for the positions of software engineers.
CEO of Kotikan said, “The whole team at Kotikan are hugely excited to join FanDuel and pursue our shared ambition of creating a stratospheric success story for Scottish technology. We all care about the same things and are excited to make products that are loved by million.”
The two companies were not unknown to each other. They have been friends since its inception. “Kotikan and FanDuel started working together in 2013 to pursue a shared mission of building the world’s best mobile app in fantasy sports. We have had an immensely strong working relationship ever since and been lucky to see the app top the App Store charts and pick up two Webby awards along the way, ” said Tom Griffiths, co-founder and CPO of FanDuel. Dutch said, “Since we started working with FanDuel in 2013, it became more and more apparent that the two companies were incredibly well aligned in both values and culture, so this move feels very natural.”
CEO of FanDuel Nigel Eccles said, “At FanDuel we set the bar consistently high and hire only the best talent – this acqui-hire of Kotikan strengthens our exiting team and will help drive forward the business.”
A week ago, FanDuel raised its latest funding round led by top US investors including Google Capital and Time Warner. This fundraising is thought to have increased the value of the company more than $1 billion and highlights the remarkable rise of the business since its inception in Edinburgh. For the Scottish company Kotikan, this is a noteworthy exit which was clearly reinforced by the companies relationship.