SPAC Recap: 5 Merger Announcements, Merger Votes, New ETF Highlights Busy Week

The company is attempting to build the first space-based broadband network accessible directly by regular mobile phones. Existing satellite networks require special phones or devices to connect to the services. AST is several years away from bringing in significant revenue. The company envisions having 9 million subscribers and $181 million in revenue in 2023.

BarkBox

Bark, the parent company of the BarkBox monthly subscription for dog owners, is going public with Northern Star Acquisition Corp. (STIC). Bark serves over 1 million dog owners monthly through BarkBox subscriptions and retailers such as Amazon.com (AMZN), Target Corporation (TGT), Petco, PetSmart (PETM), and Costco Wholesale Corporation (COST). Bark products can be found in over 23,000 stores.

BarkBox saw rapid growth during the pandemic. The company launched Bark Home in 2019, as well as Bark Eats and Bark Bright in 2020. The pet industry was worth $96 billion in 2019 and is expected to grow. The company estimates fiscal 2021 revenue will grow 65% year-over-year to $365 million. Fiscal 2022 and 2023 totals are estimated at $516 million and $706 million, respectively.

The deal values Bark at 3.5x estimated 2021 revenue. Competitors Chewy Inc. (CHWY), Freshpet Inc. (FRPT), and Trupanion Inc. (TRUP) trade at multiples of 4.4x, 13.5x, and 6.5x, respectively. The share prices of the three competitors are up by over 100% this year.

Katapult

Lease-to-own company Katapult is going public with Finserv Acquisition Corp. (FSRV). The company lets consumers pay for retail purchases in installments. The company says it has over 150 merchant partners and 1.4 million customers.

Revenue for Katapult was $92 million in fiscal 2019. Revenue is estimated to be $250 million in fiscal 2020. The company sees revenue growing at a compounded annual growth rate of 87% from 2020 to 2023, hitting $1.13 billion. Curo Group Holdings (CURO) owns 40% of Katapult and saw shares close 89% higher Friday. Curo said it will own 21% of the new company and receive $125 million in cash for its stake.

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