Technology SPACs List: 40 Blank Check Companies, IPOs and Merger Updates
Special purpose acquisition companies (SPACs), also known as blank-check firms, continue to expand their focus across the technology market. And that focus could soon involve IT distributors, MSP software providers, and cloud computing companies that work closely with VARs, ChannelE2E believes.
The list further below, updated regularly, tracks the latest SPACs that are raising money, pursuing IPOs (initial public offerings) and/or completing technology company mergers.
But before we get to the list further below, here’s some background on the SPAC market — including some concerns that a SPAC market bubble could be forming.
What Is A SPAC?
A SPAC or “blank check” company is designed to raise funds in an initial public offering (IPO) with the aim of acquiring a private business. That private company then becomes public as result of the merger, Reuters notes. Or as Investopia puts it:
“The founder of a SPAC pools money from investors and he or she may contribute to the SPAC to form a blank check company with the sole purpose of acquiring another company—or companies. The money raised through the IPO of a SPAC is put into a trust. The funds are held until the SPAC successfully identifies a viable merger or acquisition opportunity to pursue with the invested funds.”
ChannelE2E believes SPAC organizations may acquire MSP software companies as soon as this year (2021).
SPAC Market Size and Potential Investor Bubble
The SPAC trend helped to fuel $63 billion of IPO fundraising worldwide in January 2021, more than five times the proceeds from the same period a year earlier, Bloomberg reports.
Still, some pundits believe we’re heading toward a SPAC bubble — which involves too much money potentially flowing to lower-quality companies that perhaps shouldn’t be publicly held. Among those raising caution flags:
- Billionaire investor Sam Zell says some SPACs remind him of the speculation in Internet companies during the 1990s dot-com bubble. Although SPACs can be effective transactions, Zell is worried about the fundamental business prospects for some companies that go public via a SPAC, CNBC reports.
- And The New York Times raised these SPAC concerns in February 2021.
- The SPAC trend mirrors the reverse-merger implosion from a decade ago, and SPACs will end in a bursted bubble, according to Ivana Naumovska, a professor at INSEAD, a business school with campuses in France, Abu Dhabi, and Singapore.
- Moreover, the fast-growing SPAC industry may also attract closer scrutiny from the U.S. Securities and Exchange Commission (SEC), SEC Chairman Gary Gensler has indicated.
To be clear, ChannelE2E’s view on the SPAC trend is this: SPACs aren’t “all good” or “all bad.” Much like the dot-com bubble (which ultimately produced giants like Amazon, Google, eBay and others), SPAC activity could give us some great tech companies. But there will surely be some losers as well. The key questions:
- Just how big a SPAC bubble are we potentially facing?
- How soon could it potentially pop?
- And how many investors/companies could be impacted?
The answers to those questions were unknown when we first published this blog on February 10, 2021. In the meantime, here’s the list of technology-focused SPACs — which we update regularly.
Technology-Focused SPACs, IPOs and Mergers: 2021 Activity
Among the technology-focused SPACs we’re tracking so far in 2021 (sorted alphabetically)…
38. Aeon Acquisition: The blank check company, formed by The Aeon Group, has filed to raise up to $125 million in an IPO. Aeon Acquisition will seek to acquire technology-focused businesses that have an aggregate enterprise value of $1 billion to $1.5 billion. Source: Renaissance Capital, January 25, 2021.
37. Alpha Capital Acquisition: The blank check company, targeting technology businesses in Latin America, filed with the SEC to raise up to $200 million in an IPO. Source: Renaissance Capital, January 29, 2021.
36. Alpha Partners Technology Merger: The company filed with the SEC to raise up to $250 million. Alpha Partners Technology Merger plans to identify, merge with, and partner with a technology business that will exhibit sustained, long-term growth and value creation, the company says. Source: Renaissance Capital, February 17, 2021.
35. Apollo Strategic Growth Capital I: Vista Equity Partners-backed Solera Holdings is in talks to go public via a merger with blank-check firm Apollo Strategic Growth Capital. Source: Bloomberg, February 4, 2021.
34. Apollo Strategic Growth Capital II: The new special purpose acquisition company is upsizing its planned IPO by 25% as the company’s first SPAC reportedly moves close to making a merger deal. Source: SeekingAlpha, February 5, 2021.
32. Athena Technology Acquisition: The blank check company targeting technology, direct to consumer, and fintech, filed with the SEC to raise up to $250 million in an IPO. Source: Renaissance Capital, February 5, 2021.
31. B Capital Technology Opportunities: The blank check company filed with the SEC to raise up to $300 million in an IPO. Source: Renaissance Capital, February 19, 2021.
30. Corazon Capital V838 Monoceros: The company, incorporated in the Cayman Islands, is seeking to raise $200 million in an IPO. Corazon Capital will target businesses with “consumer-facing technology, subscription- or recurring-revenue models, marketplaces and networks, or those that operate in sectors such as education, social media and dating, and e-commerce.” Source: Crain’s Chicago Business, March 1, 2021.
29. dMY Technology Group IV: The fourth blank check company formed by Niccolo de Masi and Harry You targets an app business. The company is seeking to raise $250 million in an IPO. Source: Renaissance Capital, February 17, 2021.
28. EC Assets: The Luxembourg-based team at EC Assets, led by Ludwig Klatzka, is preparing to list a $250 million SPAC in New York. The prospectus and the listing application for this are to be filed with the SEC in New York before the end of March. EC Assets will seek to acquire a late-stage, IPO-read tech company in Europe, the United Kingdom, and/or the United States. The focus: SaaS, WorkTech and FinTech. The target company is expected have a valuation between $900 million and $4 billion. Source: EC Assets, March 1, 2021.
27. Elliott Management’s SPAC: Multiple updates…
- The hedge fund, best known for its high-profile shareholder-activist campaigns, is looking to join the sizzling SPAC craze. The firm, founded by billionaire Paul Singer, has been meeting with bankers about raising more than $1 billion for a special purpose-acquisition company. They cautioned the process is at an early stage and plans could change. Source: The Wall Street Journal, February 7, 2021.
- Elliott Opportunity I: The blank check company, formed by Elliott Management, will target technology opportunities. Elliott Opportunity I filed with the SEC to raise up to $1.0 billion in an IPO. Source: Renaissance Capital, February 19, 2021.
26. Evo Acquisition: The blank check company, formed by Evolution Capital Management targeting the tech and financial sectors, has raised $109 million. Evo Acquisition is seeking to merge with businesses in the technology and financial sectors with enterprise values between $250 million and $750 million. Source: Renaissance Capital, February 9, 2021.
25. Global Synergy Acquisition, a blank check company targeting technology services, raised $225 million, Renaissance Capital reports. The management team plans to acquire a business that can benefit from its operational and investing expertise in sectors such as IT Services and Business Process Outsourcing, or BPO, collectively defined as Technology Services or IT Enabled Services (ITES), Renaissance says.
24. Gores Technology Partners: The ninth blank check company formed by The Gores Group targeting a tech business, filed with the SEC to raise up to $240 million in an IPO. Source: Renaissance Capital, February 2, 2021.
23. Khosla Ventures: The company plans to raise $1.2 billion total via IPOs for three SPACs. Khosla’s blank-check companies plan to use the money they raise to take public three yet-to-be-determined private operating companies in reverse mergers. Source: Silicon Valley Business Journal, February 13, 2021.
22. Live Oak Mobility Acquisition: This is the third blank check company formed by Live Oak Merchant Partners. It targets the mobility and motion technology sectors, and is seeking to raise $200 million in an IPO. Source: Renaissance Capital, January 27, 2021.
21. Maquia Capital Acquisition: The blank check company, targeting tech-focused middle market and emerging growth businesses in North America, filed with the SEC to raise up to $200 million in an IPO. Source: Renaissance Capital, February 16, 2021.
Continue to page two of two for technology SPACs 20 through 1.