According to Bloomberg anonymous sources, Z Capital could merge two of its companies, Affinity Gaming and Sports Informaion Group LLC (SIG), but the information is not yet public.
Affinity Gaming and SIG Could Soon Be “Affinity Interactive”
Z Capital, a leading private investment company, could merge two of its portfolio companies, Affinity Gaming and Sports Information Group LLC (SIG), to create a new company with an estimated value of around $1.3 billion, including debt, according to Bloomberg anonymous sources.
Affinity Gaming, a private casino operator, currently operates eight regional hotels in Missouri, Nevada, and Iowa. SIG, a full-service sports agency and multi-media information company, is the owner of Daily Racing Form, a horse-racing data and media platform offering online wagering solutions.
Z capital founder and CEO Jim Zenni would be the new company’s chairman. SIG CEO Itay Fisher and Mary Beth Higgins, head of Affinity Gaming, will keep their leadership positions.
The new company would be called Affinity Interactive, and it would have a customer base of almost 1 million across the US. Although the information is not yet public, according to Bloomberg anonymous sources, an announcement of the deal could come as soon as this week.
Affinity Gaming’s SPAC Merger
In January, Affinity Gaming became a sponsor of Las Vegas-based Gaming and Hospitality Acquisition Corp., a special purpose acquisition company (SPAC).
Gaming & Hospitality Acquisition is a blank check company. In other words, a company without commercial activity, also known as SPAC. The company, founded to raise money through an IPO, aims to merge with an existing company.
The SPAC-style mergers allow private companies to raise capital through an IPO while also providing a stake for the SPACs owners in the business acquired after the transaction.
In February, the SPAC raised $200 million in an initial public offering. The SPAC previously said that it would merge with Affinity Gaming and another unidentified company. Now it is more likely that it would merge with Affinity Interactive.
Z Capital explored SIG Sale in 2020
In September last year, Bloomberg published information that Z Capital explored a sale for SIG. According to Bloomberg, sources sent documents with possible buyers, reviewed by Bloomberg.
The buyers then requested anonymity. According to the sources, the company could have fetched more than $350 million.