Jason Ader targets gambling M&A with $240m SPAC launch
IPO takes 26 Capital Acquisition Corporation live as top gaming execs are confirmed as nominated directors
SpringOwl Asset Management CEO Jason Ader has launched a new $240m (£176.3m) SPAC to target “high quality” businesses in the gambling and tech sectors.
The SPAC, known as 26 Capital Acquisition Corporation, began IPO proceedings with 24 million new shares priced at $10 (£7) each late on Thursday evening and has already begun trading on the Nasdaq Capital Markets stock exchange.
Each issued share consists of one class A common stock share and one half of a redeemable warrant entitling the owner to purchase an additional share at $11.50.
The IPO is set to complete next week, with SpringOwl Asset Management serving as primary investment sponsor.
It is understood the new SPAC will focus on the gambling and gaming technology sectors, as well as the consumer products, hospitality and ecommerce sectors.
“We will seek to acquire established private companies that we believe are fundamentally sound but potentially in need of financial, operational, strategic, or managerial transformation to create a compelling investment opportunity for our stockholders,” the company confirmed in a SEC filing.
“We may also target segments of existing public companies which do not fit strategically within their existing structure and/or which are significantly undervalued,” the note adds.
Ader is CEO of the new SPAC, with SpringOwl Asset Management CFO John Lewis taking up the same role at the new corporation.
Ader boasts extensive experience of the gambling sector, having served as an independent director at US casino operator Las Vegas Sands for seven years, as well as holding directorships at The Stars Group (TSG), Playtech and IGT.
An active commentator on the US market, Ader has claimed that Playtech, a business which he owns a 5% stake in, is “significantly undervalued” and would be an ideal candidate for takeover. He has said the same about London-listed betting operator 888.
Ex-TSG CEO Rafi Ashkenazi, who recently became the first executive MD and chairman of Hard Rock International’s new digital joint venture, has been nominated as a potential director of the SPAC.
Aristocrat chief innovation officer Joseph Kaminkow and US fund manager Gregory S Lyss have also been nominated as directors.