SportsMap Tech closes $115m IPO
Houston-based blank check firm eyes US sports betting tie-up
SportsMap Tech Acquisition Corp has closed a $115m initial public offering of shares.
A total of 11,500,000 shares were purchased by a combination of retail and institutional investors, including the full exercise of the underwriter’s over-allotment option, at a price of $10.00 per unit.
Each unit consists of one share of common stock and three-quarters of one redeemable warrant, with each whole warrant entitling the holder to purchase one share of common stock at a price of $11.50 per share.
Once the securities comprising the units begin separate trading, the common stock and warrants are expected to be traded on the Nasdaq Global Market under the symbols “SMAP” and “SMAPW”, respectively.
Based on the value of the business given as part of the IPO, SportsMap Tech Acquisition Corp has a valuation of $131m. The company is a blank check SPAC, which has two years to execute a transaction or risk liquidation.
It is understood the company plans to use funds to target sports technology opportunities focusing on fan engagement, esports, fantasy sports, and wider gambling acquisitions.
SportsMap Tech Acquisition Corp is led by David Gow, founder and CEO of Gow Media, a media conglomerate with a portfolio of offerings including ESPN Radio Houston and the SportsMap Radio Network.
SportsMap Radio Network was previously known as Yahoo! Sports Radio between 2011-16 as part of a media partnership with the worldwide search giant.
The partnership included the co-development of content for the network and access to resources and personalities from Yahoo! Sports and its college sports website Rivals.com.
SportsMap Radio Network already operates several media-related properties involving sports betting, including “Pushing the Odds”, a dedicated wagering show, and “Ferrall Coast to Coast”, which discusses sports betting as part of its NFL coverage.
The firm also operates the “College Football Full Circle” podcast, which focuses on NCAA football betting.
Media partnerships have emerged as a powerful force in US sports betting over the last two years, with many operators and affiliates either inking deals with US firms or through the medium of M&A.
Notable partnerships include FanDuel’s partnership with the Associated Press and 888’s partnership with Sports Illustrated, while DraftKings has diversified into media through the acquisition of VSiN.
Affiliate Better Collective also purchased the Action Network for a company record fee of $240m.