Investor Jason Ader Launches $240M SPAC with Eye on Gaming

Investor Jason Ader Launches $240M SPAC with Eye on Gaming

Jason Ader, an investor and asset manager in the gaming sector, has just taken his own SPAC onto the NASDAQ armed with $240 million targeting gaming, gaming technology, leisure, e-commerce and consumer companies.

The SPAC is named 26 Capital Acquisition Corp and is trading as ADERU on the NASDAQ. It was initially priced at $10 and was trading in the range of $10.40 on its opening day Jan. 15.

RELATED: Q&A with gaming investor Jason Ader of SpringOwl

A SPAC — an acronym that stands for special purpose acquisition company, also known as a blank-check company — is a publicly traded entity with no product or services of its own but uses its funds to acquire often privately-held businesses in friendly mergers in order to take those companies public.

Ader, the founder and CEO of SpringOwl Asset Management, has considerable experience in the gaming sector. He served as an independent director on the board of casino giant Las Vegas Sands from 2009 to 2016. Other companies with which Ader has had involvement in some fashion are IGT, Bwin, Stars Group, and, most recently, Playtech.

Seen as someone who makes deals happen, Ader reportedly helped engineer the acquisition of The Stars Group by Flutter Entertainment, helping to create one of the world’s largest online gaming companies.

In August 2020, Ader publicly pushed the idea that DraftKings acquire Playtech, a gaming software development company that’s traded on the London Stock Exchange in which Ader’s SpringOwl has a stake.

SPACs Growing in Gambling Sector

SPACs took off on Wall Street in 2020 as a way for often privately held companies to go public in a less expensive and more efficient way than via the traditional initial public offering route.

RELATED: As SPACs Explode, Which Gaming Company is Next to Go Public?

In the online gaming and sports wagering sector, there have been several recently completed SPACs, including DraftKings, Genius Sports, Golden Nugget Online and Rush Street Interactive.

Plus, there have been a number of SPACs formed, such as Ader’s 26 Capital Acquisition Corp, armed with hundreds of millions of dollars, that are hunting for attractive targets.

In early January, Atlas Crest Investment Inc. II, filed paperwork with the SEC. The SPAC aims to raise $250 million to pursue a collaboration with a business interest that’s already “in certain high growth sectors including media, fintech/payments, software and technology enabled services, online gaming/sports betting, healthcare and disruptive consumer,” according to its own initial public offering prospectus filed with the SEC.

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