Shares of Mer Telemanagement Solutions (MTSL) - Get Report shot higher Friday after the Israeli telecommunications-expense-management-firm said it will merge with sports-betting technology company SharpLink.
Mer stock recently traded at $4.35, up 52%.
The combined company will use the name SharpLink under new management and board control, the companies said. SharpLink has contracts with sports teams, media companies and league operators, including the PGA Tour and NASCAR.
Under terms of the merger agreement, the holders of SharpLink's outstanding common stock and preferred stock immediately prior to the merger will receive ordinary shares and preferred shares of MTS, the companies said.
On a pro forma and fully-diluted basis for the combined company, SharpLink shareholders are expected to own approximately 86% of the combined company.
Funding to close the transaction has already been fully committed by an institutional investor. The merger is expected to close this quarter.
"The sports betting market is shifting rapidly and is beginning to recognize the need for analytically based betting solutions,” SharpLink Chief Executive Rob Phythian said in a statement.
“We expect this merger to provide SharpLink greater access to the capital markets so that we may scale effectively to meet demand, continue to innovate, and sharpen our portfolio of businesses and technology.”
In other sports gambling news, The National Football League Thursday named three companies as “official sports betting partners”-- Caesars Entertainment (CZR) - Get Report, DraftKings (DKNG) - Get Report and privately held FanDuel.
Last month, DraftKings said it would acquire Vegas Sports Information Network, a sports-betting-content provider. Terms of the deal weren’t disclosed.