On Thursday morning, Artius Acquisition Inc. (AACQU) filed for a $525 million IPO. They will be focused on “technology enabled businesses that directly or indirectly offer specific technology solutions, broader technology software and services, or financial and transactional services to companies of all sizes”. Like many other SPACs, this one will likely be hunting for a “unicorn” involved in the tech space to some degree. The focus on technology is no surprise given the backgrounds of one of the co-founders, Charles Drucker.
Charles Drucker is the current CEO and Executive Chairman of Worldpay, a leading global payments company. Prior to that he led Vantiv. Both companies were acquired by Fidelity National Information Services, which SPAC investors should be familiar with. Most recently Bill Foley led Foley Trasimine, which was followed by Trebia – both SPACs include FIS board members seeking deals in the tech space. Drucker has been a part of successful traditional IPOs (Vantiv), and also led a top performing Worldpay company to eventually be acquired by FIS. Over the last eight years, he has been involved in six landmark transactions in the payments industry. Prior to his foray into payments, Drucker spent time in Fifth Third Banks’ asset management division.
The other Co-Founder, Boon Sim, is a managing partner of Artius Capital Partners, who is the sponsor focused on software and fintech investments. Prior to Artius, he spent time in the senior ranks of Temasek, a $230bn Singapore investment firm owned by the country’s government (see their portfolio holdings here). Although no longer managed by Boon Sim, the current portfolio’s holdings are mostly large cap technology and growth companies and less smaller cap or emerging technology companies. Before Temasek he served as the Global Head of M&A at Credit Suisse. Boon Sim’s deep global markets experience rounds out Charles Drucker’s extensive management experience.
Looking at this SPAC’s structure we see another 24 month, 1/3 warrant deal. Perhaps it is the overall SPAC market momentum or the management team’s connections to other well-regarded and similar SPACs like Foley Trasimine and Trebia. But unlike Foley Trasimene or Trebia, Artius does not have a forward purchase agreement (FPA), which puts it at a slight disadvantage to its competitors when searching for target companies. However, as with all things “SPAC” right now, selling this IPO should not pose a problem. Look for this IPO to price mid-July.
Summary of the terms below: