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In SPAC news this week, SeatGeek announced that it has entered into a business combination agreement with RedBall Acquisition.

SeatGeek, RedBall Business Combination

SeatGeek and RedBall Acquisition Corp. (RBAC) announced the signing of a definitive business combination agreement to take SeatGeek public. RedBall is a $575 million SPAC, sponsored by an affiliate of RedBird Capital Partners, a private investment firm with over $5 billion in assets under management and deep investing and operational expertise across the sports and live events ecosystem.

RedBird's current and prior investments in sports, media, and ticketing include the YES Network, On Location Experiences, Skydance, Wasserman, OneTeam Partners, Fenway Sports Group, the XFL, Toulouse FC, and the IPL's Rajasthan Royals. Upon the close of the transaction, the combined company will be named SeatGeek.

Proceeds from the transaction will be used to expand SeatGeek's enterprise partnerships in additional markets and scale marketing, while also investing in continued technology development, strategic M&A, and international expansion. Jack Groetzinger will continue as CEO of the combined company, overseeing its vision and evolution, joined by SeatGeek's current executive team.

The business combination implies an enterprise value for the combined company of approximately $1.35 billion. The boards of directors of both RedBall and SeatGeek have unanimously approved the transaction. It is expected to close in the first quarter of 2022, subject to customary closing conditions, including the receipt of regulatory approvals, and approval by RedBall's shareholders.

Legato, Algoma Merger

Legato Merger Corp. (LEGO), a publicly-traded special purpose acquisition company, and Algoma Steel Group, a fully integrated producer of hot and cold rolled steel products, announced that Legato's stockholders have approved the previously announced business combination transaction between Legato and Algoma.

The holders of approximately 74% of the shares of Legato common stock voted at the special stockholder meeting and approximately 92% of the shares voted in favor the merger. The holders of 716 shares of Legato common stock validly exercised their redemption rights in connection with the merger.

The closing of the merger is expected to occur as soon as reasonably practicable after the satisfaction by Algoma and Legato of all of the closing conditions set out in the definitive agreements. Currently the parties anticipate closing the merger during the week of Oct. 18. Following the closing of the merger, the common shares of Algoma are expected to trade on each of the Nasdaq Stock Market and the Toronto Stock Exchange under the new symbol "ASTL."

Analyst Coverage Initiations

Benchmark analyst Daniel Kurnos initiated coverage of MCAP Acquisition Corporation (MACQ) with a Buy rating and $18 price target. The company entered into a definitive agreement to merge with AdTheorent, a demand side platform with a "unique focus" on the programmatic performance marketing channel via the utilization of machine learning, Kurnos told investors in a research note. The analyst believes AdTheorent "represents the next major step in the evolution of the open internet."

MKM Partners analyst Eric Handler started coverage of Isos Acquisition (ISOS) with a Buy rating and $13 price target. On July 1, the company entered into a definitive merger agreement with Bowlero, the largest bowling center operator with 320 facilities in North America.

The company is emerging from the pandemic in a "strong position to accelerate its three-pronged growth strategy" of bowling center upgrades, new center development, and acquisitions, Handler told investors in a research note. The analyst believes Bowlero's business trends are on a "steady upswing" with revenue rising sequentially in each of the last four quarters and realized EBITDA turning positive two quarters ago.

SPAC IPOs This Week

• Founder SPAC (FOUN) opened on Oct. 15 at $10.04. "While we will not be limited to a particular industry or geographic region in our identification and acquisition of a target company, we intend to focus our search on businesses within the technology sector, with a specific focus on the theme of Digital Transformation," the company stated.
• Compass Digital Acquisition (CDAQ) opened on Oct. 15 at $9.83. The company intends to concentrate on businesses in the technology sector, including in the technology-led digital transformation software and services sector. "This includes a focus on technology-first IT and digital transformation software or services providers that have a significant share of their customer base in developed markets," it said.
• PepperLime Health Acquisition (PEPL) opened on Oct. 15 at $9.90. PepperLime intends to target companies "at the intersection of technology and consumer health and wellness."
• Sanaby Health Acquisition I (SANB) opened on Oct. 15 at $10.06. "While Sanaby Health may pursue a business combination in any industry, sector, or geographic region, Sanaby Health intends to identify promising opportunities in the healthcare industry, with a focus on digital health, life science tools and services, and innovative therapeutics," the company said.
• Achari Ventures Holdings I (AVHI) opened on Oct. 15 at $10.05. While the company may pursue an initial business combination with any business in any industry, sector, or location, the company's initial focus will be on identifying acquisition opportunities with an ancillary, or "non-plant touching," company operating in the cannabis industry, including equipment, hardware, technology/software, or hydroponics. The company is sponsored by an affiliate of Achari Ventures, "a leading early investment firm focused on the cannabis industry," it noted.
• Black Mountain Acquisition (BMAC) opened on Oct. 14 at $10.05. The company intends to focus its search for a target business on opportunities and companies in the energy industry in North America.
• Rose Hill Acquisition (ROSE) opened on Oct. 14 at $10.07. The company intends to focus on companies that operate in Latin American markets with an enterprise value of between $400 million to $1.0 billion.
• Fat Projects Acquisition (FATP) opened on Oct. 13 at $$9.96. The company intends to focus on targets with "operations or prospective operations that are technology-led in the areas of supply chain, transportation, logistics, finance, sustainability, ESG, food, agriculture, e-commerce, big data, and/or targets that are taking advantage of the monetization opportunities stemming from a rapidly growing middle class and their evolving consumption and digital needs in Southeast Asia."
• Gesher I Acquisition (GIAC) opened on Oct. 12 at $9.93. The company intends to initially focus on target businesses located in Israel, "particularly those conducting business internationally in Asia, Europe, or North America."