Mobile sports platform theScore Inc (TSX-V: SCR), a portfolio investment of Canadian venture capital firm Relay Ventures, has bought daily fantasy sports game Swoopt. The seller in the deal, the financial terms of which were not released, was U.S.-based ApptheGame Inc. The acquisition includes Swoopt’s mobile app and web offering, as well as members of its product development team, and will provide theScore with a strategic entry point into the daily fantasy sports space, the company said. In May 2014, the Toronto-based theScore raised $17.25 million in follow-on financing from Relay and Levfam Holdings.
theScore Acquires ‘Mobile First’ Daily Fantasy Sports Game ‘Swoopt’
TORONTO, Dec. 19, 2014 /PRNewswire/ – theScore, Inc. (TSX Venture: SCR) (“theScore”), a leading developer of mobile sports platforms, has closed a deal to acquire the daily fantasy sports game ‘Swoopt’ from San Francisco-based ApptheGame, Inc (“ApptheGame”).
The acquisition provides theScore, which has 9.2 million average monthly active users on its mobile platforms, with a strategic entry point into the daily fantasy sports space. The deal includes Swoopt’s mobile application and web offering and the four members of its San Francisco-based product development and leadership team. Deal consideration included a combination of cash and Class A Subordinate Voting Shares of theScore.
“Like theScore, Swoopt was created as a mobile first product and this deal equips us to enter the exciting daily fantasy sports market,” said John Levy, Founder and CEO of theScore.
“Swoopt’s approach to daily fantasy sports, featuring mobile friendly contests that can be joined and managed quickly and easily, made this a great opportunity – especially with daily fantasy enjoying a clear fit with sports fans using theScore’s mobile platforms.”
Swoopt offers a range of daily fantasy sports contests for professional baseball, hockey, football, basketball and college football. ApptheGame developed the Swoopt game with venture funding from Douglas Bergeron, Tandem Capital, i/o Ventures, Sand Hill Angels, and other investors.
ApptheGame CEO Matthew Himelstein said: “theScore is a leader in developing mobile sports experiences and this deal provides Swoopt with the expertise and resources required to take our game to the next level.”
Following the acquisition, Swoopt will continue to operate as usual. The four members of the Swoopt team join theScore with immediate effect and will continue to operate out of San Francisco, working in tandem with theScore’s Toronto-based team to enhance and build upon the Swoopt experience.
Fantasy sports is played by more than 41.5 million people in the United States and Canada and more than two thirds access games via their mobile devices, with daily fantasy a popular category within this growing market.*
As part of the deal, theScore also announced the grant of an aggregate of 550,000 options to the Swoopt team members joining theScore. Each option is exercisable for one Class A Subordinate Voting Share of theScore at an exercise price of $0.38, vests over three years and has a term of ten years. Each option is exercisable in accordance with the terms and conditions of the Company’s stock option plan.
*Source: Fantasy Sports Trade Association: http://www.fsta.org/?page=Demographics
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About theScore Inc.
theScore creates mobile-first sports experiences, connecting fans to what they love through an addictive combination of real-time news, scores, fantasy information and alerts while creating and curating content that is mobile optimized, comprehensive, customizable and seamlessly shareable. theScore is available on iOS, Android, BlackBerry and Windows Phone devices.
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SOURCE theScore, Inc.
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