Two of brightest players combine
FanDuel acquires Kotikan in major Scots tech deal
FanDuel, founded in Edinburgh, has made no secret of its ambitious hiring and scaling plans as it consolidates its position as a pioneer in the sports entertainment industry and has enjoyed consistent 300% annual growth.
This latest deal comes just a week after it closed a funding round of $275 million (£176.5m), taking total capital raised to date to $363 million.
It has worked for the past two years with Kotikan – which designed and developed the FanDuel mobile offering – and has now brought its team in-house to further innovate and develop FanDuel’s mobile products.
Both FanDuel and Kotikan were founded in Edinburgh and are at the forefront of the burgeoning tech scene developing across Scotland. All the Kotikan team have been offered roles at FanDuel to work exclusively on FanDuel products.
Nigel Eccles, FanDuel chief executive, said; “We’re delighted to be joined by Kotikan and to welcome the team into the FanDuel family, where I know they will play a key role in growing our success through the development of our mobile apps offering.”
Gavin Dutch, Kotikan chief executive, added; “Over the last 8 years, I have been very fortunate to work alongside the remarkably talented team at Kotikan and I’m proud of everything we’ve accomplished together.
“Since we started working with FanDuel in 2013, it became more and more apparent that the two companies were incredibly well aligned in both values and culture, so this move feels very natural. The whole team at Kotikan are hugely excited to join FanDuel and pursue our shared ambition of creating a stratospheric success story for Scottish technology.”
FanDuel’s new employees will complement the existing teams in Edinburgh, Glasgow, New York, Orlando and LA. The company is seeking to increase headcount this year and is actively recruiting in the UK for software engineers including java, python and front-end developers.
Founded in 2007, Kotikan has grown to become Scotland’s largest mobile app development agency. Demand for its mobile expertise has skyrocketed in recent years and has led it to grow a team of over 50 employees with a £2.4 million turnover. The company is behind the award-winning apps of organisations such as Skyscanner, Standard Life and the Edinburgh Festival Fringe.
FanDuel, founded in Edinburgh in 2009, has quickly emerged as one of Scotland’s new generation of tech success stories, with an online product developed in Scotland, but with a customer base wholly in the US and Canada. Positioned as a transatlantic business with 243 staff split between the UK and the US, the company has over one million paying users and projected entry fees of over $2 billion for this year. FanDuel has secured its position as a key player in the sports entertainment sector with exclusive partnership deals with CBS, NBC and is the official daily fantasy sports provider to the NBA.