BIG DEALS

National Post (Latest Edition) - Financial Post Magazine - - RISK -

As com­pa­nies scram­ble to reach economies of scale that will make it some­what eas­ier to com­pete with mar­ket lead­ers FanDuel and DraftKings, the big fan­tasy sports providers in Canada all seem to be ac­qui­si­tion tar­gets. Here are three big deals so far in 2015:

Pub­licly traded DraftTeam was taken over by Cal­gary-based Sabre Graphite Corp. in March. Just three months later, that com­pany was in­volved in a re­verse takeover (pend­ing share­holder ap­proval) by Cal­i­for­nia-based Fan­ta­syAces LLC. It’s a move in­sid­ers say makes fi­nan­cial sense for DraftTeam — although its brand will dis­ap­pear in favour of the Fan­ta­syAces brand.

Toronto-based Fan­tasy Feud Inc. in June was rolled into Toronto-based Gam­ing Na­tion Inc., which also in­cludes Thorn­hill, Ont.-based elec­tronic raf­fle op­er­a­tor 5050 Cen­tral, and U.S-based fan­tasy sports con­tent provider Fan­ta­syGuru.com and hand­i­cap­ping ser­vice Pick Na­tion.

Square Labs, a pri­vately owned $100-mil­lion Van­cou­ver-based in­vest­ment com­pany, in July pur­chased a ma­jor­ity stake in Pro Draft League (since re­branded as Fan­tasy6). “It’s bet­ter to have a smaller piece of a wa­ter­melon rather than the ma­jor­ity piece of a grape,” says co-founder Mark Tadros.

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