The Week In SPAC News - Sunday, July 11

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In SPAC news this week, Ford- and Volkswagen-backed self-driving startup Argo is planning to go public either via a traditional IPO or via a SPAC merger, while payments recovery company MSP is said to be in talks with a Lionheart SPAC. Nextdoor also announced on Tuesday that it has entered into a definitive agreement with Khosla Ventures Acquisition Co. II, via which Nextdoor intends to become a publicly listed company.


 Nextdoor (KIND) and Khosla Ventures Acquisition Co. II (KVSB), a special purpose acquisition company sponsored by an affiliate of Khosla Ventures, announced that they have entered into a definitive agreement under which Nextdoor would become a publicly listed company. Upon closing of the proposed transaction, the combined company will be listed under the ticker symbol "KIND." "Nextdoor has been at the forefront of cultivating 'hyperlocal' communities and neighborhoods since its inception, allowing neighbors to create meaningful connections - both online and offline," said Sarah Friar, Chief Executive Officer of Nextdoor. "Our business strengthens as we scale, benefiting from strong network effects, and we believe the proposed transaction with KVSB accelerates the growth potential of our platform. We remain focused on optimizing our strategy and investing in products to drive continued neighbor and organization acquisition and engagement."


Circle (CRCL) announced that it has entered into a definitive business combination agreement with Concord Acquisition (CND), a publicly traded special purpose acquisition company. Under the terms of the agreement, a new Irish holding company will acquire both Concord and Circle and become a publicly-traded company, expected to trade on the NYSE under the symbol "CRCL." The transaction values Circle at an enterprise value of $4.5B. The business combination is supported by $415M of capital commitments at $10.00 per share. Including the contribution of up to $276M of cash held in Concord Acquisition Corp's trust account, the transaction is expected to deliver up to $691M of gross proceeds to the combined company.

Upon consummation of the transaction, existing Circle shareholders will maintain approximately 86% ownership interest in the combined company. The transaction, which has been unanimously approved by the board of directors of both Concord Acquisition Corp and Circle, and is expected to close in the fourth quarter of 2021. Jeremy Allaire, Circle's co-founder and CEO, commented: "Circle was founded with a mission to transform the global economic system through the power of digital currencies and the open internet. We've made huge strides towards realizing this vision, and through this strategic transaction and ultimate public debut, we are taking an even bigger step forward, with the capital and relationships needed to build a global-scale internet financial services company that can help businesses everywhere to connect into a more open, inclusive and effective global economic system.


Bullish announced it intends to go public on the New York Stock Exchange through a merger with Far Peak Acquisition. Bullish is preparing to release a regulated cryptocurrency exchange that offers liquidity with technology that enables retail and institutional investors to generate yield from their digital assets. The business combination of Bullish and Far Peak has a pro forma equity value at signing of approximately $9B at $10 per share, to be adjusted at transaction closing based on crypto asset prices around that time. The proceeds include net cash in trust of approximately $600M and $300M of committed private investment in public equity, or PIPE. The transaction is expected to close by the end of 2021 and is subject to approval by Far Peak stockholders and other customary closing conditions, including regulatory approvals. "In the coming weeks, Bullish exchange will run a private pilot program leading up to its public launch anticipated later in 2021. In the pilot program, participants will be able to test and experience the platform first-hand within a simulated market environment, testing out Bullish exchange's proprietary innovations, including the Bullish Hybrid Order Book and Liquidity Pools," the company stated.


Ford (F) and Volkswagen (VWAGY) backed self driving start-up Argo has chosen Citigroup (C) and JPMorgan (JPM) to lead an IPO or SPAC deal to become a public company, Bloomberg's Kiel Porter and Keith Naughton reported. Argo AI was founded by Bryan Salesky, formerly a part of Google's (GOOG) self driving unit, and Uber Technologies (UBER) alum Peter Rander, the authors noted. "Our focus right now is on securing a round of private investment which is part of our plan to go public. The funding "we expect to raise this summer will help cement our path to commercialization," a company representative said.


MSP Recovery, a company that specializes in the recovery of Medicare and Medicaid secondary payments, is in talks to go public through a merger with Lionheart Acquisition Corp. II (LCAP), a blank check-firm, Bloomberg's Gillian Tan reported, people familiar with the matter. Any transaction, if agreed, may be announced in coming weeks and could value the combined entity at more than $30B, one of the sources said.


Polestar, the electric vehicle maker controlled by Volvo and Zhejiang Geely, is in discussions to go public through a tie-up with special-purpose acquisition company Gores Guggenheim (GGPI), Bloomberg's Gillian Tan and Kiel Porter reported, citing people with knowledge of the matter. A deal may value the combined entity at approximately $25B, the authors said.


Alpha Tau Medical and Healthcare Capital (HCCC), a special purpose acquisition company, announced they have entered into a definitive business combination agreement. Upon closing of the Business Combination, Alpha Tau is expected to be listed on the Nasdaq. A group of Healthcare-focused financial and strategic investors have committed to participate in the transaction through a fully committed ordinary share PIPE of approximately $92M at $10.00 per share. The Business Combination values Alpha Tau at an implied pre-money equity value of $600M, and is expected to add approximately $337M of cash to its balance sheet upon closing, inclusive of $275M in HCC's trust and $92M in PIPE proceeds, net of transaction expenses.

All existing Alpha Tau shareholders will retain 100% of their current equity holdings and are expected to hold approximately 59% of the pro forma company immediately following the closing. The transaction is expected to be completed by the end of 2021, and is subject to obtaining necessary regulatory approvals, the fulfillment of customary closing conditions, as well as the approval of both Alpha Tau's and HCC's shareholders.


Benchmark analyst Mark Schappel initiated coverage of dMY Technology Group, Inc. III (DMYI) - which is in the process of merging with IonQ - with a Buy rating and $18 price target. His positive view is based on what he sees as IonQ's early leadership in quantum computing, unique trapped ion hardware technology, and his belief that "we are standing at the cusp of the next leap forward in computing," Schappel told investors. Upon closing of the transaction, IonQ shares will trade on the NYSE under the symbol "IONQ," having previously called itself "the first publicly traded pure-play hardware and software company in the quantum computing space."

Craig-Hallum analyst Greg Palm initiated coverage of Revolution Acceleration Acquisition Corp (RAAC) - which is in the process of merging with Berkshire Grey - with a Buy rating and $15 price target. The analyst noted that Berkshire Grey has emerged as a leading robotics company that fully integrates hardware, software and AI into something it calls "Intelligent Enterprise Robotics." This product portfolio offers customers a comprehensive solution that includes robotic picking, mobility, cloud-based monitoring and analytics and service. As a result, Palm views Berkshire Grey as a key enabler that allows customers to better compete in this ever-changing environment. Berkshire Grey customers include Walmart (WMT), Target (TGT) and FedEx (FDX), the analyst adds. Once the Berkshire Grey merger with Revolution Acceleration Acquisition Corp is completed, the combined company's shares of Class A common stock are expected to remain listed on The Nasdaq Stock Market under the ticker symbol "BGRY."


  • Galata Acquisition (GLTA) opened on July 9 at $10. While the company may pursue an initial business combination opportunity in any business, industry, sector or geographic region, the company intends to focus on technology-enabled financial services businesses in emerging markets. "Segments the company might explore include, but are not limited to, insurance, reinsurance and insurance services, asset management, retail or investment banking, and merchant acquisition and payment processing," Galata said.
  • Acropolis Infrastructure Acquisition (ACRO) opened on July 9 at $10. Acropolis is sponsored by Acropolis Infrastructure Acquisition Sponsor, an affiliate of Apollo Global Management (APO). The company intends to focus its search for a business combination target in infrastructure, infrastructure services and related sectors in North America.
  • Agrico Acquisition (RICOU) opened on July 8 at $9.99. While Agrico Acquisition Corp. will not limit its search for a target company to any particular business segment, it will concentrate its focus on targets in agriculture, horticulture, and aquaculture that aim to improve yield, efficiency or profitability in the production, processing, distribution, provision of capital, or consumption of outputs, inputs, data, technology or other services located in the Americas.
  • AltC Acquisition (ALCC) opened on July 8 at $10. The company was co-founded by Sam Altman and Michael Klein, who is also the founder and managing partner of M. Klein and Company.

Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at  more

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