Canadian developed Mazaii to go public with Relativity Acquisition SPAC

Are SPACs back? A proposed combination between Relativity Acquisition Corporation and online casino supplier Mazaii Corp marks the first deal of its kind in the industry for some time.

Special purpose acquisition company (SPAC) Relativity would acquire 100% of the outstanding equity and equity equivalents of Mazaii. The transaction places Mazaii, a platform provider and games developer, at an initial enterprise value of $500.0m (£387.2m/€459.9m).

Based in Montreal, Mazaii claims to provide its solutions to “prominent brands” within the gaming sector, but does not list any clients on its website. It says it has made a number of strategic acquisitions of as-yet unnamed companies, which it says gives it access to regions such as Europe, North America, Latin America and Asia.

Chief executive Eli Baazov previously worked at Amaya Gaming, a business that once grew into a major industry player after acquiring PokerStars and, according to a Linkedin comment, may be related to Amaya’s founder David Baazov. That post suggests he was involved in plans to list a virtual reality gaming software business called Vida Gaming on the Nasdaq ten months ago.

Completion of the transaction remains contingent on several factors including due diligence, applicable regulatory approvals, negotiation of a definitive agreement and board approval. The deal would then close in the second half of the year.

Mazaii CEO: merger is just the beginning

Commenting on the deal Baazov said the SPAC combination would accelerate Mazaii’s expansion plans.

“We have fortified our position, expanded our market reach and enhanced our innovative service offerings,” Baazov said. “With our in-house intellectual property and continuous organic growth, we are confident in our ability to disrupt the gaming landscape and achieve highly favourable results for our shareholders beyond 2024. 

“This is just the beginning of our journey and we are excited to shape the gaming industry’s future.”

Relativity CEO and chairman Tarek Tabsh added that Mazaii provides a significant opportunity for scalability and revenue growth and the combination would enhance its competitive advantage and market positioning.

“The igaming industry is experiencing rapid growth, with increasing acceptance and legalisation in various regions,” Tabsh said. “Growing consumer demand, driven by the increasing penetration of smartphones and internet access, further fuels this expansion. 

Who is Relativity Acquisition Corp?

Relativity’s CEO Tabsh previously worked in the cannabis and pharmaceuticals industry, while chief financial officer Steven Berg has experience spanning investment banking to building companies in the cannabis industry.

Director Emily Paxhia also has links to the cannabis industry while John Quelch, another director, has worked across multiple industries. The business listed in 2022, raising $143.8m in an oversubscribed funding round.

However it received notice that its securities would be delisted from the Nasdaq in April this year, over unpaid fees of $81,000. A previous transaction to take Florida-based clothing distribution business SVES Apparel was agreed in February 2023, but appears to have failed to progress.

The Relativity site has not yet issued any news of the Mazaii transaction.

Are SPACs on the way back?

It therefore remains unclear whether Relativity actually lets Mazaii list on the Nasdaq and comes after gaming’s SPAC boom appeared to have died out.

From 2021 there was a flurry of SPAC combinations in the industry, most notably DraftKings acquiring SBTech then listing with Diamond Eagle Acquisition Corp and SBTech. Meanwhile, Betway operator Super Group combined with Sports Entertainment Acquisition Corp, and Genius Sports listed with dMY Technology Group Inc II.

This soon tailed off, with several ventures falling by the wayside. Former Goldman Sachs executive Gary Cohn failed in an effort to take lottery operator Allwyn Entertainment public through Cohn-Robbins Holding Corp. Elsewhere, Caliente Interactive, the joint venture of Playtech and Caliente, saw its listing fail through Tekkorp Digital.