Las Vegas SPAC Acquires Canadian iGaming Firm Mazaii in $500 Million Deal
Mazaii, a prominent Canadian provider of iGaming games and solutions, is set to be acquired by Relativity Acquisition Corp. (NASDAQ: RACY), a Las Vegas-based special purpose acquisition company (SPAC). The deal, which values Mazaii at an initial enterprise value of $500 million, underscores the ongoing robust interest in iGaming assets and technology, despite the absence of new state approvals for online wagering this year. Six states currently allow iGaming.
Relativity Acquisition was initially formed with the intention of pursuing a deal in the cannabis sector. However, the blank-check firm indicated it would remain flexible in its search for an acquisition partner, making the combination with Mazaii a strategic move.
“The company supplies its advanced gaming content and technology to prominent brands within the sector, enhancing their platforms and player experiences. Through strategic acquisitions, Mazaii Corp expands its market reach and strengthens its product offerings across key regions, including Europe, North America, Latin America, and Asia,” according to a statement.
The transaction is expected to be completed in the second half of this year.
Mazaii Could Find Enthusiastic Investor Audience
Mazaii could be well-positioned to attract a broad investor base and benefit from public market access, given the heightened interest in the long-term potential of the internet casino market.
However, there is a shortage of publicly traded iGaming tech companies, which could work in Mazaii’s favor as investors anticipate a promising year for online casinos in 2025.
Securing superior technology is crucial for operators aiming to fully capitalize on the internet casino market. Analysts and operators are optimistic about the future of internet casinos, noting the potential for state-level legalization and the higher profit margins compared to sports betting. Additionally, online casino players tend to be more loyal and spend more money than sports bettors.
Montreal-based Mazaii and Relativity Acquisition expect to provide more details on the merger in the coming months.
SPAC Resurgence? Maybe. Maybe Not.
Several years ago, the gaming industry was a hotbed for SPAC deals, but interest waned as the broader market became disenchanted with companies going public through SPAC mergers. Many of these companies, including those in the gaming sector, performed poorly after becoming publicly traded entities.
While some gaming firms that went public via SPAC mergers have delivered strong returns for investors, many others have seen their share prices plummet.
Following a surge in gaming SPAC transactions in 2021, many blank-check firms looking for merger partners in the industry gave up as interest rates rose and stocks entered a bear market in 2022. SPACs generally have two years to complete business combinations, including mergers. If they fail to do so, they can seek extensions or liquidate and return capital to investors.
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