Tekkorp Digital Acquisition in talks to merge with Caliente Interactive
Deal would be a separate transaction to any possible takeover of Playtech, although UK-based software giant controls nearly half of Mexican operator Caliente
Las Vegas-based SPAC Tekkorp Digital Acquisition is reportedly in talks to merge with Caliente Interactive. The deal is rumoured to be valued at $2.5bn (£1.8bn).
The transaction, if executed, would serve as the vehicle through which Caliente — an online gaming firm with the bulk of its operations in Mexico — would become a publicly traded company.
Under the terms of the deal, a $250m private investment in public (PIPE) would be delivered by Spanish language broadcasting giant Univision and its shareholders, although this has not been publicly confirmed by the blank-cheque entity. Another $190m from other institutional investors would also be included.
UK-based gaming software giant Playtech controls nearly half of Caliente through a joint venture. The company is itself rumoured to be a takeover target with Playtech a hotbed of acquisition speculation in recent months, having accepted an offer from Aristocrat Technologies in October valuing it at 58.4% of its last closing price prior to the proposal being revealed.
Other potential suitors for Playtech include JKO Play Limited (JKO), a consortium led by former F1 team owner Eddie Jordan and Gopher Investments, the company’s second-largest shareholder.
The sale of Playtech to any of the potential suitors and Tekkorp Digital’s efforts to merge with Caliente Interactive are separate transactions. But there are ties that need to be severed to execute the blank-cheque deal.
According to Sky News: “City sources said that Caliente was expected to take over Playtech’s right to acquire a 49% stake in Calipay, its parent company, which would trigger a payment to shareholders in the UK-based company.”