DJ Apex Clearing Holdings, Blank Check Co. Northern Star Investment Corp. II to Merge
By Michael Dabaie
Fintech company Apex Clearing Holdings LLC and blank check company Northern Star Investment Corp. II agreed to merge.
As a result of the deal, Apex is expected to become a publicly listed company on the New York Stock Exchange under the new ticker symbol APX.
Northern Star shares were up 5% to $11.48 premarket.
The transaction values Apex at an enterprise value of approximately $4.7 billion post-money and is expected to provide up to $850 million of gross cash proceeds at closing. The transaction includes an upsized, fully-committed $450 million private placement of common stock at $10 a share led by Fidelity Management & Research Company LLC, Baron Capital Group, Coatue, and Winslow Capital Management LLC among other institutional investors.
All Apex shareholders and management are rolling over 100% of their equity into the combined company.
The company expects to use proceeds to accelerate and support the continued build out of Apex's platform and business, as well as to partially reduce existing Apex debt obligations.
For the year ended December 31, the company generated unaudited operating revenue of about $236 million and unaudited adjusted earnings before interest, taxes, depreciation, and amortization of about $86 million.
The Northern Star board of directors and Apex board of managers approved the proposed merger and the related transactions, which are expected to be completed in the second quarter of 2021.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
February 22, 2021 08:10 ET (13:10 GMT)
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