Latitude360 is in the process of acquiring daily fantasy sports operator Major League Fantasy, looking to connect to customers both inside and outside its venue.
The deal will close in about 90 days, CEO Brent Brown said, and customers should be able to begin using the service by the September start of the NFL season.
“We always try to find ways to not just interact with our customers but engage them in an experience,” said Brown, who founded Jacksonville-based Latitude 360 (OTCQB: LATX) about eight years ago.
The fantasy sports business — in both its season-long and daily incarnations — has been growing, with the daily version particularly booming. In both versions, players pay a fee to enter a contest, draft a team and compete with friends or strangers.
Competitors to Major League Fantasy have been pulling in the money in recent months: DraftKings — the second largest company in the sector — recently got $250 million from The Walt Disney Co. (NYSE: DIS), while industry founder FanDuel is looking at an investment that would value the company at $1 billion.
Brown would not disclose details on the Major League Fantasy acquisition, but said the deal — which would be mostly for stock — would have a “significant impact on the bottom line.”
“The fees we make off the website are at an unbelievable margin for us,” he said.
And in-person traffic would not only drive up food and drink revenue, but could result in more brand awareness and loyalty.
“We’re just giving them an added experience they can take home or on a trip with them and stay connected with us,” Brown said. “This is another way to be connected to our customers’ lifestyle.”
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