Just a week after closing a massive $275 million round of funding, FanDuel has announced that it will acquire Kotikan, the maker of its mobile app.
The Scotland-based firm boasts a modest 57 employees and reportedly earned $3.7 million last year through its work with companies like Skyscanner, which operates one of the globe’s biggest airline flight search engines.
FanDuel, which also has its roots in Scotland, was founded in 2009 and has since become one of the country’s biggest tech companies. The DFS site’s entire product was built inside the country and its team has been working with Kotikan since 2013.
With a working relationship already cemented, the deal allows Kotikan’s entire workforce to focus specifically on FanDuel projects. “The closer we worked together, the more we wanted to contribute to FanDuel’s success,” said Kotikan founder Gav Dutch in a blog post. “Eventually we realized the best way to do this was to devote the entire Kotikan team to crafting FanDuel products.”
Scotland is home to a thriving tech startup community, which has included brands like OneDrum, which was picked up by Yammer in 2012, and Cirrus Logic, which was acquired by Wolfson Microelectronics for nearly a half a billion dollars.
With its most recent funding round, FanDuel has raised a total of $363 million from investors to date. The company counts NFL and NBA team owners, along with NBC Sports Ventures and Comcast Ventures as backers.
FanDuel to double its workforce
FanDuel has been on something of a hiring spree as of late, bringing 38 former Zynga employees on board in May before adding the 57 from Kotikan. The gaming company will open a new studio in Orlando, Florida, to accommodate their new team members. “There is a ton of sports tech talent down there just because of the presence of EA Sports and Zynga,” said FanDuel spokeswoman Justine Sacco. “FanDuel is scaling incredibly fast. We’re going to be more than doubling our headcount this year.”
The site has now moved its headquarters to New York, but keeps an office in Edinburg Scotland. The company boasts a total of 243 staff members across the UK and the US.