Skillz, the San Francisco-based mobile gaming company, has reached a deal to go public via a reverse merger with Flying Eagle Acquisition Corp, a special purpose acquisition company (SPAC). The reverse merger will add about $850 million to Skillz’s balance sheet and is expected to give the company an initial valuation of $3.5 billion. Skillz says it’ll use the additional capital from its merger to support marketing efforts and accelerate its growth in both domestic and international markets. Under the terms of the deal, Skillz’s existing stockholders have agreed to a 24-month lockup period for their shares. The company’s CEO, Andrew Paradise, will continue to retain a controlling stake following the merger.

Skillz is looking to go public eight years after its founding. As a private company, Skillz has raised over $100 million in equity and debt financing from investors including notable names like Telstra Ventures, Liberty Global Ventures, and SVB Capital. Currently, Skillz has more than 200 employees. The company expects to reach $555 million in annual revenues by 2022.

Flying Eagle Acquisition Corp, the merging SPAC, was taken public in March of this year by Hollywood executives Jeff Sagansky and Harry Sloan. It represented the pair’s sixth SPAC. One of their earlier ones, Diamond Eagle Acquisition Corp, was involved in a deal that saw DraftKings, the sports betting company, debut on the public markets.