SPAC Weekly | ARC Global SPAC Brief (Dec.20 - Dec.24)

• The SPAC market has shown signs of slowing down before approaching to Christmas. Approximately $0.4 billion were raised for the 4 SPACs that listed this week. There were 7 new business combinations announced, and 3 combinations completed.

• The largest SPAC IPO of the week is Northview Acquisition Corp which raised $165 million with focus on the Healthcare sector globally.

• The New Announced Mergers and Completed Mergers mainly happened in the Technology sectors.

During this week, 14 new SPACs filed their S-1 totaling $3.35 billion in trust value, averaging $238.2 million.

Here is the brief description on the other new SPACs which filed S-1:

• Gores Holdings IX Inc. filed S-1 for $525 million IPO to target the General sector globally.

• Gores Holdings X Inc. filed S-1 for $725 million IPO to target the General sector globally.

• Delphi Growth Capital Corp. filed S-1 for $300 million IPO to target the Real Estate sector globally.

• Ledger Acquisition Company filed S-1 for $150 million IPO to target the Financial sector globally.

• SHUAA Partners Acquisition Corp I filed S-1 for $200 million IPO to target the Technology sector in the Eastern Europe, Middle East, and Africa.

• Cartesian Growth Corp II filed S-1 for $200 million IPO to target the General sector globally.

• KnightSwan Acquisition Corporation filed S-1 for $200 million IPO to target the Technology sector globally.

• Counter Press Acquisition Corp filed S-1 for $75 million IPO to target the Media & Entertainment sector globally.

• Deep Space Acquisition Corp. I I filed S-1 for $210 million IPO to target the General sector globally.

• Roman DBDR Tech Acquisition Corp. III filed S-1 for $250 million IPO to target the Technology sector globally.

• Aurora Technology Acquisition Corp. filed S-1 for $200 million IPO to target the Technology sector globally.

• RF Acquisition Corp. filed S-1 for $100 million IPO to target the General sector in Asia.

During 20th December – 24th December, there were 4 SPACs IPO’s, raising $0.4 billion in gross proceeds. A decrease of 85 % from $2.8 billion compared to previous week. The average IPO size was $103.75 million.

More details on the target focus of these New Listed SPACs:

• Gardiner Healthcare Acquisitions Corp. announced the pricing of its $75 million IPO. The new SPAC intends to target businesses in the healthcare industry, particularly for North American or European companies in the life sciences and medical technology sectors, with a specific focus on small and large molecule therapeutics.

• Sagaliam Acquisition Corp. announced the pricing of its $100 million IPO. The new SPAC intends to capitalize on the capabilities of its management team and sponsor to identify, acquire and operate a business that may provide opportunities for attractive risk-adjusted returns in the telecommunications, media, and technology industries.

• Larkspur Health Acquisition Corp. announced the pricing of its $75 million IPO. The new SPAC intends to focus on companies in the biotechnology sector and would benefit from access to public markets and the operational and strategic expertise of our management team and board of directors.

• NorthView Acquisition Corp. announced the pricing of its upsized $165 million IPO. The new SPAC intends to focus its initial search on target businesses in the healthcare sector with an enterprise value of approximately $500 million to $2 billion.

During the period from 20th December to 24th December, 7 SPACs have entered into Merger Agreements, 3 SPACs have completed their business combinations.

The 7 SPACs that have entered into Merger Agreements: 

• Ackrell I (NASDAQ:ACKIT) has entered into a definitive agreement to combine with outdoor cooking company Blackstone Products at an enterprise value of $900 million, or 2x its 2021E revenue. Logan, Utah-based Blackstone provides outdoor griddles, accessories and consumables.

• Global SPAC (NASDAQ:GLSPT) has entered into a definitive agreement to combine with edge computing firm Gorilla at an enterprise value of $708 million. Taipei, Taiwan-based Gorilla provides AI-enabled hardware and software for traffic management and security monitoring.

• Zanite (NASDAQ:ZNTE) has entered into a definitive agreement to combine with urban air mobility firm Eve at an enterprise value of $2.37 billion, or 8.5x 2028E EBITDA. Florida-based Eve is the electric vertical takeoff and landing (eVTOL) subsidiary of Brazilian aviation manufacturer Embraer (NYSE:ERJ) aiming to commercialize its designs as air taxis.

• Globis (NASDAQ:GLAQ) has entered into a definitive agreement to combine with African agribusiness Forafric at an equity value of $300 million. Casablanca-based Forafric produces flour and semolina as well as secondary processing products such as pasta and couscous out of plants in North and Sub-Saharan Africa.

• L&F (NYSE:LNFA) has entered into a definitive agreement to combine with cybersecurity firm ZeroFox at an enterprise value of $1.3 billion, or 6.7x 2023E revenue. Baltimore, Maryland-based ZeroFox provides external threat intelligence and protection to businesses, brands and people.

• ITHAX Acquisition Corporation (NASDAQ: ITHX) has entered into a definitive agreement to combine with technology-first travel marketplace company Mondee at an enterprise value of $842 million or 7.2x its 2023E revenue. The Silicon Valley-based company delivers an operating platform, modern ecosystem, and segment-specific content for the gig economy, remote workers, and travelers.

• Dynamics (NASDAQ:DYNS) has entered into a definitive agreement to combine with leading Gene Circuit company Senti Biosciences at an enterprise value of $276 million. San Francisco-based Senti Bio uses its Gene Circuit platform to develop next-generation cell and gene therapies to enhance therapeutic effectiveness against diseases.

The 3 SPACs that have completed the Mergers:

• Ackrell I (NASDAQ:ACKIT) has entered into a definitive agreement to combine with outdoor cooking company Blackstone Products at an enterprise value of $900 million, or 2x its 2021E revenue. Logan, Utah-based Blackstone provides outdoor griddles, accessories and consumables.

• Global SPAC (NASDAQ:GLSPT) has entered into a definitive agreement to combine with edge computing firm Gorilla at an enterprise value of $708 million. Taipei, Taiwan-based Gorilla provides AI-enabled hardware and software for traffic management and security monitoring.

• Zanite (NASDAQ:ZNTE) has entered into a definitive agreement to combine with urban air mobility firm Eve at an enterprise value of $2.37 billion, or 8.5x 2028E EBITDA. Florida-based Eve is the electric vertical takeoff and landing (eVTOL) subsidiary of Brazilian aviation manufacturer Embraer (NYSE:ERJ) aiming to commercialize its designs as air taxis.

• Globis (NASDAQ:GLAQ) has entered into a definitive agreement to combine with African agribusiness Forafric at an equity value of $300 million. Casablanca-based Forafric produces flour and semolina as well as secondary processing products such as pasta and couscous out of plants in North and Sub-Saharan Africa.

• L&F (NYSE:LNFA) has entered into a definitive agreement to combine with cybersecurity firm ZeroFox at an enterprise value of $1.3 billion, or 6.7x 2023E revenue. Baltimore, Maryland-based ZeroFox provides external threat intelligence and protection to businesses, brands and people.

• ITHAX Acquisition Corporation (NASDAQ: ITHX) has entered into a definitive agreement to combine with technology-first travel marketplace company Mondee at an enterprise value of $842 million or 7.2x its 2023E revenue. The Silicon Valley-based company delivers an operating platform, modern ecosystem, and segment-specific content for the gig economy, remote workers, and travelers.

• Dynamics (NASDAQ:DYNS) has entered into a definitive agreement to combine with leading Gene Circuit company Senti Biosciences at an enterprise value of $276 million. San Francisco-based Senti Bio uses its Gene Circuit platform to develop next-generation cell and gene therapies to enhance therapeutic effectiveness against diseases.

In 2021, there have been 610 SPAC IPOs and they are holding $162 billion total in trust, and 192 mergers completed having $458 billion enterprise value, and 1 SPACs liquidated.

Currently, there are 123 SPACs pending to complete the business combinations after entering into merger agreements with potential targets.

References list:

https://www.sec.gov/

https://spacinsider.com/

https://spacalpha.com/

https://www.spacresearch.com/

https://spactrack.net/

https://www.renaissancecapital.com/

https://www.crunchbase.com/

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