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Online betting company SBTech will have to place $30 million in escrow as insurance for covering the fallout from a suspected ransomware infection.
The company agreed to do so as part of re-negotiated acquisition terms with Diamond Eagle Acquisition Corporation (DEAC), a blank-check company that acquired SBTech and rival platform DraftKings and is planning on merging the two later this year.
https://www.sec.gov/Archives/edgar/data/1772757/000110465920044518/tm2015358d1_8k.htmIn a filing with the US Securities Exchange Commission, DEAC said SBTech must place $10 million in cash and $20 million in stock in an escrow fund for the next two years.
The funds will be used to deal with any expenses caused by a “cybersecurity incident” that took place on March 27.
As reported by Legal Sports Report at the time, SBTech’s platform went down in an incident that looked like a classic ransomware infection. Hundreds of third-party websites…
