In SPAC news this week, Scientific Games is evaluating strategic alternatives to execute the divestiture of its Lottery and Sports Betting businesses, including an initial public offering or a combination with a special purpose acquisition company. Meanwhile, The Oncology Institute is going public via SPAC merger with DFP Healthcare Acquisitions.

IPO OR SPAC MERGER

Scientific Games (SGMS) announced that the company, with the support of its board of directors, including Executive Chair Jamie Odell and Executive Vice Chair Toni Korsanos, intends to divest its Lottery and Sports Betting businesses. Scientific Games is evaluating strategic alternatives to execute the divestitures for each business, respectively, including an initial public offering, or IPO, or a combination with a special purpose acquisition company, or SPAC, or a sale or a strategic combination with another business. "There can be no assurances that Scientific Games' exploration of alternatives for its Lottery and Sports Betting businesses will result in any transactions or other actions by the company," it said.

DFP HEALTHCARE, THE ONCOLOGY INSTITUTE MERGER

DFP Healthcare Acquisitions Corp (DFPH), a special purpose acquisition company sponsored by an affiliate of Deerfield Management, announced that it has entered into a definitive agreement for a business combination with The Oncology Institute, or TOI. Following the business combination, DFP expects to be renamed The Oncology Institute and will remain listed on the Nasdaq stock market under new ticker symbol (TOI). The transaction values the combined company at a pro forma enterprise value of approximately $842M and implies a multiple of 2.4-times estimated 2022 revenue. The current equity holders of The Oncology Institute will be entitled to receive an additional earn out payment of up to 12.5M shares of The Oncology Institute common stock. In addition to the approximately $230M held in the DFP Trust Account, healthcare investors have committed to purchase $275M of shares of common stock of the company at $10.00 per share through a private placement in public entity, or PIPE. Assuming no redemptions of DFP public shares, the current equity holders of The Oncology Institute will collectively own 48%, Deerfield will own approximately 14%, other DFP stockholders will own 33%, and DFP's sponsor will own 5% respectively of the approximately 106M issued and outstanding shares of common stock of The Oncology Institute immediately following the closing. DFP estimates that, assuming no redemptions of DFP shares, the company will have an initial market capitalization of approximately $1.06B, with approximately $225M of cash on the balance sheet and a growth trajectory. The Oncology Institute expects to use this capital to accelerate its de novo and acquisition-driven growth initiatives. The business combination, which has been approved by the board of directors of DFP and The Oncology Institute, is expected to close in Q3 or Q4 of 2021, subject to customary conditions, including the approval by DFP stockholders.

SPAC ROUTE MOST LIKELY FOR TPG

Private equity firm TPG is exploring a public listing, either through a straightforward IPO or a merger with a special purpose acquisition company, the Wall Street Journal's Miriam Gottfried and Cara Lombardo reported, citing people familiar with the matter. The SPAC route appears to be the most likely way, the authors said, noting that such a deal could value TPG at roughly $10B.

SPAC IPOS THIS WEEK:

• Frontier Investment Corp. (FICVU) opened on July 1 at $9.85. The company intends to focus its search on a target with business operations or prospective operations in the technology, digital media, e-commerce, financial technology, or digital services sectors across the high growth markets of the Middle East North Africa & Turkey, Sub-Saharan Africa, South Asia and Southeast Asia, but may pursue an acquisition or a business combination target in any business, industry or geography.
• Macondray Capital Acquisition Corp. I (DRAYU) opened on July 1 at $10. The company intends to focus its search on companies with an aggregate enterprise value of approximately $1.5 billion and up in the software, data and technology, media and telecom industries.
• Corsair Partnering (CORS) opened on July 1 at $9.91.
• Shelter Acquisition Corporation I (SHQA) opened on June 30 at $9.95. The company intends to concentrate on identifying businesses that provide technologically innovative solutions to the real estate industry.
• Social Capital Suvretta Holdings Corp. IV (DNAD) opened on June 30 at $10. The company intends to focus on businesses operating in the biotechnology industry and within the immunology subsector.
• Social Capital Suvretta Holdings Corp. III (DNAB) opened on June 30 at $10.05. The company intends to focus on businesses operating in the biotechnology industry and within the oncology subsector.
• Mountain Crest Acquisition Corp. IV (MCAF) opened on June 30 at $9.90. The company intends to focus on operating businesses in North America.
• Social Capital Suvretta I (DNAA) opened on June 30 at $10.10. The company intends to focus on businesses operating in the biotechnology industry and within the neurology subsector.
• Thunder Bridge Capital Partners IV (THCP) opened on June 30 at $9.90. The company intends to focus its search on companies in the financial services industry.
• Gobi Acquisition (GOBI) opened on July 29 at $9.91. The company's business strategy is to identify and complete a business combination with a company "with strong growth potential that has a strong connection to Asia Pacific."