tilman's big deal

Texas entrepreneur takes empire public in billion-dollar merger

Tilman Fertitta Shut Up and Listen book close up

Tilman Fertitta is taking Landry's public.

Photo by J. Thomas Ford

A Texas billionaire is about to become even wealthier. Tilman Fertitta announced that his Houston-based company,Fertitta Entertainment, will go public via a merger with FAST Acquisition Corp. (NYSE: FST).

In total, the deal will be worth approximately $6.6 billion. It includes over 500 restaurant locations — ranging from Saltgrass Steakhouse to Mastro's — five Golden Nugget Hotel and Casinos, and Fertitta's stake in Golden Nugget Online Gaming. That valuation is based on projected earnings of $648 million in 2022.

Fertitta will own 60 percent of the company and will serve as its president, chairman, and CEO. Prior to the transaction, Forbes estimated Fertitta's net worth at $4.1 billion. His stake in the new company will grow that amount by $2 billion.

The merger does not include Fertitta's other hotels, such as The Post Oak, his properties in Galveston such as the Pleasure Pier, or the Houston Rockets.

Landry's operated as a public company until 2010, when Fertitta took it private. Going public now allows the company to pursue acquisitions and take advantage of opportunities presented by the downturn is both restaurants and casinos as a result of the coronavirus pandemic. The new company will benefit from both the increase in casino and online gaming taking place across the country as well as decreased competition due to restaurant closures, it states in a press release.

“I want to do big gaming deals,” Fertitta toldBloomberg News. “Thirty years ago there was gambling in two states. Now we’re approving new states for online almost on a weekly basis.”

Merging with FAST instead of going through a traditional IPO allows the transaction to be completed more quickly. The deal is expected to be finalized in the second quarter of 2021.

"After I compared the opportunities provided by a transaction with FAST, versus the traditional IPO route, it became abundantly clear that we could access the capital markets with more certainty and speed if we did a deal with FAST," Fertitta said in a statement. "At the end of the day, the decision to do a deal with FAST was a no-brainer.”

Institutional investors will contribute $1.2 billion and own 35 percent of the company. FAST will contribute the $200 million it raised via an initial public offering; its sponsors will own 1 percent of the company. Public investors will own 4-percent. Shares in FAST are up 4 percent at the time of publication.

Fertitta has arranged a merger with a special purpose acquisition company before. In 2020, Golden Nugget Online Gaming, Inc. (NASDAQ: GNOG) went public via a similar transaction. It's currently trading at approximately $18 per share.

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SKIN IN THE GAME

Renowned Hill Country tattoo artist inks new sacred geometry app

Photo courtesy of Dillon Forte

Dillion Forte at his "tattoo ranch" in the Texas Hill Country.

In the world of tattooing, there may seem to be few better rat traps left to build, but Dillon Forte aims to change that. In October, the renowned Wimberley-based tattoo artist and entrepreneur introduced a new iPadOS app to bring ancient symbology into the digital age.

Forte has made a worldwide name for his black dot work (a contemporary take on stick-and-poke techniques) and ambitious undertakings like tattooing underwater and opening a “tattoo ranch.” His ink appears on Usher, Chris Hemsworth, and Kehlani.

Still, he is most recognized for his sacred geometry designs, using patterns to convey various meanings. His interest led him to create the Sacred Geometry Drawing App, a convenient way for novices and experts to develop and export their creations.

The app grew out of his own practice. Over the past decade, he has used tablets and freehand techniques to achieve his highly symmetrical artwork but grew to realize existing tools were not always easy to use.

“The app is an attempt and fulfillment of my desire to make sacred geometry accessible and bring the ability to create into the fingertips of as many people as possible,” Forte tells CultureMap via email, adding a tagline: “symmetry made simply.”

He says he wished the app was available when developing his signature style as a tattoo artist, but it was designed with a broad range of users in mind. He hopes that designers, educators, and artists will find a use for it.

A short intro to the app's capabilities is available on YouTube. It looks like a standard drawing app, starting with a blank canvas and some tools like pens, pencils, colors, and of course, straight line and dot makers.

A "symmetry index" anchors the functionality and expands it to something between 2D art and 3D modeling. In addition to generating shapes like repeating patterns and spirals, the app also creates 3D shapes with grids, so that the artist can map their design in real space or even create sculptures. There is also an index for explaining the spiritual meaning of some standard designs.

“Geometry often prompts an intimidating feeling when it comes to making art,” Forte continues. “The fundamentally complex and often academic nature of math-based art can induce a sense of fear in the potential user instead of creating a sense of awe. The purpose of the sacred geometry app is to cultivate the latter."

Creatives interested in constructing their own geometric masterpieces can download the app at the App Store for free, and in-app purchases are available.

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