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 $575M SPAC, sponsored by an affiliate of RedBird Capital Partners, a private investment firm with over $5B 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 of the combined company of approximately $1.35B. 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 were 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 or waiver by Algoma and Legato of all of the remaining closing conditions set out in the definitive agreements related to the Merger. Currently the parties anticipate closing the Merger during the week of October 18th. 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 (ADTH) 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. The company on July 1 entered into a definitive merger agreement with Bowlero (BOWL), 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:
"On the Fly: The Week in SPAC News" is The Fly's new recurring series of stories on the latest SPAC initial public offerings, SPAC deal news, and associated analyst commentary.
RedBall Acquisition
+0.015 (+0.15%)
Legato Merger Corp.
+0.27 (+2.35%)
Algoma Steel
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MCAP Acquisition Corporation
+0.01 (+0.10%)
AdTheorent
+ (+0.00%)
Isos Acquisition
+0.04 (+0.40%)
Rubicon Technologies
+
Compass Digital Acquisition
+
PepperLime Health Acquisition
+
Sanaby Health Acquisition I
+
Achari Ventures Holdings I
+ (+0.00%)
Black Mountain Acquisition
+
Rose Hill Acquisition
+
Fat Projects Acquisition
+
Gesher I Acquisition
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