DraftKings Inc., a provider of mobile fantasy and sports betting, entered an agreement to merge with publicly traded holding company Diamond Eagle Acquisition Corp. and SBTech, a provider of sports betting and gaming technology. 

Diamond Eagle will take on the DraftKings Inc. name and remain listed on the Nasdaq under a new ticker symbol, making the new firm the only vertically integrated pure-play sports betting and online gaming firm in the U.S.

"The combination of DraftKings leading and trusted brand, deep focus on customer experience and data science expertise and SBTech's highly innovative and proven technology platform creates a vertically integrated powerhouse," Jason Robins, co-founder and CEO of DraftKings, said in a company release. "I look forward to building significantly upon our goals of continuing our state-by-state rollout and creating the most entertaining and engaging customer experiences for sports fans globally."

DraftKings currently offers online and mobile sports betting in New Jersey, Indiana, Pennsylvania and West Virginia and retail locations in New Jersey, New York, Iowa and Mississippi. Daily fantasy meanwhile is available in 43 states and eight international markets. 

Robins will continue to lead the newly combined firm and will retain DraftKings' leadership team, including co-founders Paul Liberman and Matt Kalish. The SBTech management team will be integrated into the combined firm. 

Investors, including funds managed by Capital Research and Management Co., Wellington Management Co. and Franklin Templeton, have committed a private investment of $304 million in Class A stock to the combined firm. 

The combined firm will have a market capitalization of $3.3 billion and $500 million in unrestricted cash. Board officials at the companies have already approved the deal, which is expected to close during the first half of 2020. 

Cover image: DraftKings.