The Week In SPAC News - Sunday, Oct. 10

In SPAC news this week, AgiiPlus and Goldenbridge Acquisition announced a merger agreement, while Billy Beane's RedBall confirmed it is in talks to potentially bring SeatGeek public.

RedBall Confirms Talks with SeatGeek 

After Bloomberg's Gillian Tan reported that RedBall Acquisition (RBAC), the special purpose acquisition company led by Billy Beane and RedBird Capital Partners' Gerry Cardinale, is in advanced discussions to combine with SeatGeek and bring it public, the company confirmed that it is in exclusive discussions with SeatGeek in connection with a possible business combination.

"There is no assurance that a definitive agreement will be signed. The company will not comment further unless and until a transaction is agreed or discussions are terminated," RedBall stated in a press release following an earlier report from Bloomberg regarding the talks.

AgiiPlus, Goldenbridge Acquisition Merger

AgiiPlus announced that it has entered into a definitive merger agreement on Sept. 30 for a business combination with Goldenbridge Acquisition (GBRG), a special purpose acquisition company.

Upon consummation of the transaction contemplated by the Merger Agreement, Goldenbridge will reincorporate to the Cayman Islands by merging with AgiiPlus Global. Concurrently with the reincorporation merger, AgiiPlus Corporation will be merged with and into AgiiPlus, resulting in AgiiPlus being a wholly owned subsidiary of AgiiPlus Global.

Upon the closing of the transactions, the combined company is expected to remain Nasdaq-listed under the ticker symbol "AGII." The proposed transactions contemplated by the Merger Agreement valued the combined company at an estimated equity value on a pro-forma basis of approximately $578 million, assuming no redemptions from the trust account.

Wallbox Deal Done 

Wallbox (WBX) announced it has completed its business combination with Kensington Capital Acquisition Corp. II (KCAC), a special purpose acquisition company. The business combination was approved by Kensington stockholders in a special meeting held on Sept. 30, 2021 and formally closed on Oct. 1, 2021. Wallbox shares will start trading on the NYSE under the ticker symbol "WBX" and warrants will trade under the ticker symbol "WBX.WS."

Wallbox offers EV charging and energy management solutions for residential, semi-public, and public use. The company's product line-up includes Quasar, the world's first DC bidirectional charger for home use; Supernova and Hypernova, DC fast and ultrafast chargers for public use; and a suite of AC charging solutions and smart energy management software.

Analyst Coverage Initiations

DA Davidson analyst Brent Thielman initiated coverage of QualTek Services with a Buy rating and $13 price target ahead of its business combination with its SPAC sponsor Roth CH Acquisition III (ROCR), which is expected to close in the third quarter of this year.

The analyst is positive on the company's position as an "established telecom infrastructure service provider" ahead of a nearing "more robust" telecom spending environment. Thielman added that this should support investment around major FCC auctions, increased carrier and customer competition, as well as accelerating equipment demand and industry bookings.

Lake Street analyst Troy Jensen started coverage of Altimar Acquisition Corp. II (ATMR) - which has signed a merger agreement with Fathom Digital Manufacturing and will trade under the symbol "FDMG" upon deal closing - with a Buy rating and $12.50 price target.

Corporations' supply chain disruptions over the past two years due to COVID-19, the Suez Canal blockage, and adverse weather conditions have helped accelerate a trend towards digital manufacturing, and he believes Fathom has "one of the broadest manufacturing service offerings in the industry."

Jensen sees Fathom as poised to continue to grow faster than the overall market by "consistently taking share from the fragmented world of small, regional machine shops."

SPAC IPOs This Week

  • Schultze Special Purpose Acquisition Corp. II (SAMA) opened on Oct. 8 at $9.93. The company intends to initially focus on pursuing business combinations with target companies that "may be experiencing liquidity constraints, are financially stressed, or have experienced and emerged from a financial restructuring." The company's sponsor is an affiliate of alternative investment management firm Schultze Asset Management.
  • Maxpro Capital Acquisition (JMAC) opened on Oct. 8 at $10.10. The company intends to focus on industries that "complement its management team's background and to capitalize on the ability of the management team to identify and acquire a business where the management team has extensive experience." Maxpro added that, "Sectors the company plans on exploring include, but are not limited to, the healthcare and technology industries, specifically within the biotechnology and pharmaceutical sectors."
  • Hawks Acquisition (HWKZ) opened on Oct. 8 at $9.87. Hawks Acquisition expects to focus on businesses "that have either emerged from a restructuring or private companies that are burdened by leveraged capital structures."
  • Learn CW Investment (LCW) opened on Oct. 8 at $10.04.
  • IX Acquisition (IXAQ) opened on Oct. 7 at $9.88. The company intends to focus its search on companies in the Technology, Media and Telecommunications, and Information and Communication Technology industries, specifically the telecommunications infrastructure, internet and technology, and digital services sectors operating in Europe and emerging markets.
  • Avalon Acquisition (AVAC) opened on Oct. 6 at $10.04. The company intends to initially focus on prospective target businesses that have unseen potential for revenue growth and/or operating margin expansion with high recurring revenue and cash flow, defensible intellectual property, and strong market positions.
  • Parsec Capital Acquisitions (PCXC) opened on Oct. 6 at $10.11. The company intends to focus on the space economy, transportation, and technology adjacent industries.
  • Phoenix Biotech Acquisition (PBAX) opened on Oct. 6 at $10.08.
  • Enphys Acquisition (NFYS) opened on Oct. 6 at $9.85. The company plans to target businesses which predominantly operate in Ibero-America and whose business strategy is aligned with energy transition and sustainability themes, renewable energy in particular.
  • Crixus BH3 Acquisition (BHAC) opened on Oct. 5 at $9.95. The company intends to focus its efforts on businesses that manage, finance, operate, construct, control, own, or support real estate or which derive a large component of revenue from real estate, construction, or infrastructure related activities.
  • Mount Rainier Acquisition (RNER) opened on Oct. 5 at $10.05. The company intends to focus on established, technology focused businesses that have an aggregate enterprise value of approximately $500 million to $2 billion and would benefit from access to public markets.

Disclosure: None

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