New Las Vegas-Based SPAC Would Target Gaming Mergers

New Las Vegas-Based SPAC Would Target Gaming Mergers
© PA

A new SPAC, Tekkorp Digital Acquisition Co., with its eye on digital gaming and related businesses, and with a roster of experienced gambling executives, has filed for registration with the U.S. Securities and Exchange Commission.

SPACs, the acronym stands for Special Purchase Acquisition Company, also go by the handle of “blank check companies.” It’s a publicly traded company without its own product and services but, armed with considerable capital, seeks privately-held firms in order to form a combination through merger or acquisition.

In that way, the previously privately held company can more easily and with less expense enjoy the benefits of the public markets and quickly raise capital for corporate purposes.

CHECK OUT: Publicly traded companies are a snapshot into gaming’s future

Tekkorp, a Las Vegas-based entity, filed its SEC draft registration statement in late August with a general form of registration of securities and an amended form in September. It has two years to complete a merger or acquisition.

Tekkorp seeks to raise $300 million ($345 million if the underwriters’ over-allotment option is exercised) at $10 per unit in order to form a combination with a business or businesses in the “digital media, sports, entertainment, leisure and gaming industries,” according to documents filed with the SEC. The target businesses identified would have “an enterprise valuation between $1 billion and $2 billion," the filing said.

That’s How DraftKings Went Public

The most notable digital gaming SPAC to date has been the combination of SPAC Golden Diamond Acquisition Corp., and the previously private DraftKings, the daily fantasy and sports wagering company. That marriage created the now publicly held DraftKings Inc. (DKNG), which is traded on the NASDAQ. Since that stock started trading in April, the price has just about tripled and was in the low 60s on Oct. 2.

Tekkorp’s chief executive officer is Matthew Davey, who most recently was CEO of SG Digital, the digital division of Scientific Games Corp. Davey has overseen more than 10 mergers and acquisitions and more than $1.2 billion in debt and equity capital raised to support the companies he headed, according to the SEC filing.

The Tekkorp president is Robin Chhabra, whose resume includes leading corporate strategy, mergers and acquisitions and business development at gaming operators The Stars Group and William Hill, and a supplier, Inspired Gaming Group.

Tekkorp's Board of Directors

Two prominent names on Tekkorp’s board of directors are perhaps best known for their roles in traditional casino gaming: Morris Bailey, the board chairman, and Tony Rodio, a board member.

Bailey owns Resorts Casino & Hotel in Atlantic City and helped elevate that once trailing property through partnerships with Mohegan Sun, Poker Stars and DraftKings. Resorts opened a sportsbook in August 2018. It was the first New Jersey casino to have both online and in-person betting options.

Rodio was recently briefly the CEO of Caesars Entertainment (he had been CEO of Affinity Gaming) until Caesars was more completely folded into Eldorado Resorts (but retained the Caesars label) with new CEO Tom Reeg. Rodio is perhaps best known for his work in Atlantic City, where he worked at several gaming resorts but was CEO and president of the Tropicana that saw marked capital improvements on his watch.

Betting News Articles

Latest Betting News

DISCLAIMER: Online Wagering is illegal in some Jurisdictions. It is your responsibility to check your local regulations before playing online. GDC Trading Ltd takes no responsibility for your actions.
© 2011-2020 KAX Media America Inc. All rights reserved. Registered with the New Jersey Division of Gaming Enforcement with Vendor ID #90927.
Terms and Conditions  |   Privacy Policy

Asset 4 Android GET IT ON facebook Download_on_the_App_Store_Badge_US-UK_RGB_blk_4SVG_092917 twitter