Technology SPACs List: 90 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)…
90. 5G Edge Acquisition Corp. The blank check company filed to go public in late March 2021. Source: Bloomberg, April 1, 2021.
87. 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.
86. Agile Growth: The blank check company, led by former Alfresco CEO and investor Jay Bhatt, raised $300 million. Agile Growth plans to focus on the technology industry, including pure software and software-enabled businesses such as infrastructure and application software, healthcare IT, fintech, robotics/automation, and education technology, as well as potential additional software and technology segments. Source: Renaissance Capital, March 10, 2021.
85. 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.
84. 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.
83. Apollo Strategic Growth Capital I: Multiple updates…
- 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.
- Vista Equity Partners and Apollo Strategic Growth Capital are in discussions on a potential deal involving Solera, DealerSockt and Omnitracs. Source: Bloomberg, March 4, 2021.
- Vista Equity Partners’ negotiations to merge three of its companies with acquisition firm Apollo Strategic Growth Capital in a $15 billion transaction have been halted. It isn’t clear when or if talks will be revived. The talks centered on a merger featuring Vista’s Solera Holdings Inc., DealerSocket Inc. and Omnitracs. Source: Bloomberg, March 17, 2021.
82. 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.
81. Apollo Strategic Growth Capital III: The SPAC plans to raise $400 million in an IPO. Source: Reuters, March 29, 2021.
80. Aquarius I Acquisition Corp. Lion Group Holding Ltd., operator of an all-in-one trading platform that offers a wide spectrum of products and services with a focus on Chinese investors, has signed engagement letters with Maxim Group LLC and Loeb & Loeb LLP to form a second SPAC company, Aquarius I Acquisition Corp. Source: Lion Group, March 8, 2021.
79. Archimedes Tech SPAC Partners: Multiple updates…
- The company, targeting AI, cloud services, and auto-tech, filed with the SEC to raise up to $100 million in an IPO. Source: Renaissance Capital, February 16, 2021.
- The company priced its upsized IPO ($ATSPU) and now expects to raise $120 million. While the Company may pursue an acquisition in any business industry or sector, it intends to concentrate its efforts on identifying businesses in the technology industry. Source: Archimedes Tech SPAC Partners Co., March 10, 2021.
- The technology SPAC has completed a $120 million IPO. Source: Archimedes, March 15, 2021.
78. Aries I Acquisition: The blank check company has filed with the SEC to raise $175 million in an IPO. The company plans to target highly specialized fields within the technology sector across North America, Europe, and Asia, including: aerospace, satellites, and space exploration; quantum computing and chemistry; artificial intelligence and machine learning; cybersecurity; and blockchain and digital currencies. Source: Renaissance Capital, March 3, 2021.
77. Athena Technology Acquisition: Multiple updates…
- 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.
- The company raised $250 million in an IPO. Source: Renaissance Capital, March 16, 2021.
76. 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.
75. Belong Acquisition: The blank check company is seeking to raise $150 million in an IPO. The SPAC plans to focus on high-growth technology and tech-enabled businesses in sectors such as e-commerce, software and digital media.
74. Big Sky Growth Partners: Mark Vadon, the Seattle e-commerce entrepreneur who co-founded Zulily and Blue Nile and served as chairman of Chewy, is joining the SPAC craze. Vadon has emerged as the chairman and CEO of Big Sky Growth Partners, a blank check company that’s looking to raise $300 million via an IPO. Source: GeekWire, March 2, 2021.
73. Black Dragon Acquisition I: The blank-check company plans to raise up to $250 million in an IPO. The SPAC will target the e-commerce, media technology, and FinTech sectors. Source: Renaissance Capital, April 5, 2021.
72. Build Acquisition Corp.: The company raised $200 million in an IPO, and plans to acquire SaaS, FinTech or another type of software business. Source: Austin Business Journal, March 18, 2021.
71. Byte Acquisition: The blank-check company raised $300 million. The company plans to target the Israeli technology industry, including cybersecurity, automotive technology, fintech, enterprise software, and cloud computing, among other focus areas. Source: Renaissance Capital, March 19, 2021.
70. CAVU Technology Acquisition: The company is seeking to raise $100 million. Potential acquisition and merger targets include North American companies operating in technology, including in IT services, software, SaaS, and digital transformation. Source: Seeking Alpha, March 19, 2021.
69. Cerberus Telecom Acquisition Corp.: Kore Wireless Group has agreed to go public through a blank-check company backed by private equity firm Cerberus Capital Management. The deal with Cerberus Telecom Acquisition Corp. values the combined company at about $1 billion, including debt. Kore, which is owned by private equity firm Abry Partners, helps businesses connect IoT devices. Source: Bloomberg, March 12, 2021.
68. 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.
67. dMY Technology Group III: IonQ has entered into a definitive merger agreement with dMY Technology Group III. Upon closing of the transaction, IonQ shares will trade on the NYSE under the symbol “IONQ” as the first publicly traded pure-play hardware and software company in the quantum computing space, the companies say.
66. dMY Technology Group IV: Multiple updates…
- 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.
- The SPAC raised $300 million, and plans to target companies in the consumer technology ecosystem that are either consumer-facing or support the infrastructure of consumer apps, with enterprise values between $1 billion and $3 billion. Source: Renaissance Capital, March 5, 2021.
65. 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.
64. 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.
63. 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.
62. Falcon Acquisition: The company filed with the SEC to raise up to $250 million in an IPO. The company plans to target “the dis-intermediators,” which it defines as forward-thinking and technology-driven businesses leading the disruption across the legacy incumbents, focusing on those across the media & entertainment, technology, financial services, wellness, infrastructure, and real estate industries. Source: Renaissance Capital, March 26, 2016.
Continue to page two of four for technology SPACs 60 through 41.