Credit & Capital

SPAC Activity Slows Down

The SPAC market slowed down last week with three deal announcements and no offerings.
Lauren MuskettApril 26, 2021

Last week was slow for the SPAC market, with three deal announcements and only a couple of rumored deals. There also were no new SPAC offerings during the week — unusual for a market segment that has been so hot over the last year.

SPAC Deals

Financial payment card and crypto storage company CompoSecure announced a SPAC deal with Roman DBDR Tech Acquisition valuing the company at $1.2 billion. The company uses proprietary manufacturing methods for high standards of security, helping some of the largest banks and financial institutions. Customers include JP Morgan Chase and American Express. The company’s Arculus offers innovative cryptocurrency cold-storage and security solutions.

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Smart home technology company SmartRent announced a SPAC deal with Fifth Wall Acquisition. SmartRent offers an internet of things operating systems for residential property owners, homebuilders, and residents. SmartRent has more resident units installed and states served than all its competitors combined, the company claims. Fifteen of the top 20 multifamily unit rental companies are clients, the company says.

Offerings include self-guided tours, video intercoms, Wi-Fi solutions, parking solutions, and smart home products like electricity monitoring. The company plans to offer more services, such as carbon emissions monitoring and a marketplace. SmartRent had revenue of $52 million in fiscal 2020 and is guiding for fiscal 2021 revenue of $119 million.

Vivid Seats announced a SPAC deal with Horizon Acquisition valuing the company at $1.95 billion. The company is one of the largest marketplaces for buyers and sellers of tickets to sporting events, concerts and theater. Vivid Seats supports over 12 million customers and 3,400 sellers. The company sold 17 million tickets annually prior to the COVID-19 pandemic.

Vivid Seats could benefit from pent-up demand after the pandemic.

In fiscal 2019, Vivid Seats had $2.3 billion in gross order volume and revenue of $471 million. The company estimates revenue of $168 million in fiscal 2021 and $459 million in fiscal 2022.

SPAC Rumors

Online map company Mapbox is in talks to go public in a SPAC deal with SVF Investment. The deal could value Mapbox at between $1.5 billion and $2 billion, according to Sky News. Mapbox has more than 600 million active users worldwide, through customers like Adobe, IBM, Instacart, New York Times, and Lonely Planet. Mapbox announced a deal recently with General Motors Company for Mapbox Dash to be used in vehicles.

Israeli fintech Pagaya is in talks to go public in a SPAC deal that could value the company at $8 billion, according to Calcalist. Pagaya uses machine learning and data analytics to help financial companies. The company has over $1 billion in total consumer credit issuance. No specific SPACs have been linked to the deal.

Other News

An offering of 74,000 packs of digital Major League Baseball NFTs from Topps sold out in 70 minutes. Topps is going public in a SPAC deal with Mudrick Acquisition and is considering a possible NFT play.

President Joe Biden virtually toured a Proterra electric bus factory. Proterra, which is going public with ArcLight Clean Transition, could benefit from Biden’s goal of zero emissions from transit and school buses by 2030.

The merger between Genius Sports and dMY Technology Group II was approved. Shares now trade under the ticker GENI.

Origin Materials announced a partnership with PrimaLoft to deliver carbon-negative insulating fiber for bedding, apparel, and outdoor gear. The company, which is merging with Artius Acquisition, also announced the addition of veterans from Clorox and Procter & Gamble to its board of directors.

Lightning eMotors and GigCapital 3 announced the approval of their merger. Shares will begin trading under the new ticker ZEV soon.

This story originally appeared on Benzinga. © 2021

Benzinga does not provide investment advice. All rights reserved.