New industry-backed SPAC targets US gaming acquisition worth at least $1bn
Tekkorp Digital Acquisition Corp is led by big hitters including Matt Davey and Robin Chhabra
A new Special Purpose Acquisition Company (SPAC) led by former NYX and Scientific Games CEO Matt Davey is seeking a US sports betting acquisition worth at least $1bn (£760m).
Tekkorp Digital Acquisition Corp will begin trading today on Nasdaq and is expecting to raise up to $250m through its IPO.
In its S1 SEC filing, the SPAC said it intended to acquire a business within the sports, digital media entertainment, leisure and gaming industries, including and not limited to affiliates, operators, B2B suppliers and sports data providers.
“Given similarities to the United Kingdom market, we believe there is opportunity to achieve comparable levels of digital penetration in the US,” the company said in its filing.
“Over the past decade, companies within the European digital gaming market have experienced low double-digit annual growth, and we believe that, based on demand observed in the US, these businesses would be poised to achieve higher double-digit annual growth as they capitalise on the US market’s expansion.”
Former The Stars Group (TSG) and Fox Bet executive Robin Chhabra is serving as the SPAC’s president, while ex-NYX CFO Eric Matejevich will handle the financials.
Caesars CEO Tony Rodio and ex-TSG EVP chief legal officer Marlon Goldstein have been nominated as directors.
Sean Ryan of Facebook Gaming is also involved.
“We believe we have assembled a team with extensive industry-related operating and acquisition expertise to capitalise on this opportunity,” the SPAC reported.
“Our management team has comprehensive experience in identifying, acquiring and executing strategic investments globally and has done so successfully in a number of sectors, including the digital media, sports, entertainment, leisure and gaming industries.”
Tekkorp is seeking a business with a strong executive team, robust regulatory controls and an appropriate valuation.
The SPAC did not reveal a deadline for its acquisition process but did say that Chhabra’s non-compete contract with an undisclosed company could delay its ability to pursue specific firms until January 2021.
Chhabra left Fox Bet in August when TSG parent company Flutter Entertainment consolidated US businesses FanDuel and Fox Bet into one department.