We’ve had another SPAC combo leak today, this time it’s regarding the $690 million GS Acquisition Holdings (GSAH) and Vertiv, a portfolio company of Platinum Equity.
Does Platinum Equity ring a bell? It should. It’s the private equity firm of none other than Tom Gores, brother of Alec Gores. Verra Mobility (VRRM), the acquisition of Gores II, was a Platinum Equity company, as is PAE, the intended acquisition of Gores III. Platinum Equity is clearly familiar with SPAC transactions and the SPAC process, so if the rumors of a Vertiv/GSAH combination are true, that’s especially good news, i.e., both sides of the table will be negotiating with a significant amount of (good) SPAC deal experience.
However, Vertiv is a provider of backup power and fail-safe systems for data centers, which is very different than the industrial sector that GSAH originally intended to look for companies. Nonetheless, a good deal is a good deal, and if this one makes sense, no one will be complaining.
As for the particulars of Vertiv, it is the former network power business of Emerson Electric (EMR.N), which Platinum Equity acquired three years ago for roughly $4 billion. However, in 2017, Platinum agreed to sell Vertiv’s automatic transfer switch business to Schneider Electric for $1.25 billion. Today, however, various news sources are citing a potential valuation for a GSAH/Vertiv deal somewhere between $5 and $6 billion, which would be a significant increase from the $4 billion valuation from just four years ago. However, keep in mind that the technology Vertiv provides supports cloud computing, which is extremely hot, so $5-$6 billion could be a realistic number. We just don’t know yet.
All things considered, if the rumors are true, this could be another interesting SPAC deal to cap off the end the year. Obviously, more details are needed to evaluate any potential combination, but on the face of it, this one has all the right ingredients, so far.
Lastly, “So-Called” Watch strikes again. If you recall, I’ve mentioned before the tendency for financial journalists to reference SPACS as “a so-called blank check company”. and today’s coverage of the Vertiv leak did not disappoint. You can read these “so-called” articles, from today HERE and HERE. And if you really want to go down a rabbit hole of “so-called blank check company” references, you can go HERE for Virgin Galactic, and HERE, HERE, HERE and HERE for various other times the phrase was used.
Stay tuned for any further “leaks”.
A look at Plus’ software-first approach to autonomous trucking. After years of investment and excitement, the dawn of self-driving cars and trucks is now here. The question now is which business model among autonomous driving technology companies will win out? This week, we speak with David Liu, CEO of autonomous trucking company Plus. Plus announced...
At the SPAC of Dawn One thing that SPAC investors can typically count on while their money is invested in a SPAC’s trust is that it is going to grow one way or the other between now and their next redemption opportunity, but the devil can occasionally be in the details. In 2024, it became...
Thunderstone has filed for a $50 million SPAC to put a new first-time Asia-based team in action on a generalist hunt. The new SPAC is offering investors a right to a 1/8 share in each unit with 18 months to initially complete a business combination. It is the 8th fresh S-1 filed with underwriter D....
At the SPAC of Dawn In a trading session that may find itself built around the release of Fed minutes at 2 pm ET this afternoon, a pair of SPAC targets have added their own fresh information to the mix. Enterprise AI firm Fusemachines, which has a pending combination with CSLM (OTC:CSLMF), put out a...
Globa Terra Acquisition Corporation (NASDAQ:GTERU) announced the pricing of its $152 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “GTERU”, Wednesday, July 9, 2025. The new SPAC plans to mount a search for a target in the agriculture, agtech or biotech sectors with an emphasis on water...