North Atlantic (NASDAQ:NAAC) announced this afternoon that it has mutually terminated its combination agreement with communications platform Telesign, effective immediately.
Similar to a handful of other SPACs we’ve seen, North Atlantic cited current market conditions as the root of the termination. CEO of North Atlantic Gary Quin stated in the press release that ongoing market volatility “made it impossible” to complete the merger with Telesign.
The deal includes a $200 million minimum cash condition and its $107.5 million PIPE does not fully cover this, although North Atlantic also has about $380 million in trust. The PIPE drew investment from a group of investors including SFPI-FPIM as a key investor, to fund TeleSign’s growth plans.
Going forward, the special meeting of NAAC stockholders to approve the proposed transaction has been cancelled and NAAC will seek an alternative business combination.
And, with a deadline of January 26, 2023, the SPAC still has several month on its clock to seek out its alternative business combination. North Atlantic raised $330 million at IPO on January 22, 2021 and intends to combine with a consumer, industrials or telecommunications business in Europe or North America. The SPAC is led by Chairman Andrew Morgan, CEO Gary Quin, President Patrick Doran, and CFO Mark Keating.
Volatility within the SPAC and equity markets are creating a difficult environment for SPACs and IPOs alike, making North Atlantic’s deal the 27th to terminate this year and the second this week. But, this termination may have not been a surprise to some as North Atlantic postponed its shareholder meetings twice with its most recent postponement from early June lacking a new date for a renewed attempt. It postponed an earlier meeting on May 18 and noted at the time that it had received sufficient votes to approve the deal, but not all closing conditions had been met.
The SPAC initially announced its $1.3 billion combination with Telesign late last year on December 16. Marina del Ray, California-based Telesign provides security solutions through APIs, combining digital identity with global communications capabilities to help enterprises connect, protect and engage with their customers.
Telesign recently announced its first quarter revenues reached $111.6 million for a 20.8% year-on-year growth rate and a gross profit margin of 22.3%.
Terms Tracker for the Week Ending January 17, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. We may be heading into a Polar Vortex, but SPACs managed to generate some heat this week with three more IPOs. For those keeping count,...
Giving internet users a place to chat or post pictures of their lunch has never been an especially profitable endeavor until social media platforms gain the scale to leverage user data en masse like Meta (NASDAQ:META). But, the addition of retail investor appetites to the equation has suddenly turned even smaller platforms into a tantalizing...
At the SPAC of Dawn This week comes to a close with the debut of the year’s fourth SPAC IPO as Hennessy Capital Investment Corp. VII (NASDAQ:HVIIU) priced last night. This brings the month’s total IPO proceeds to $597.5 million, which is already a drastic year-on-year improvement from January 2023, which saw just $144 million...
Hennessy Capital Investment Corp. VII (NASDAQ:HVIIU) announced the pricing of its $175 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “HVIIU”, Friday, January 17, 2025. The new SPAC intends to seek out a business combination with a company in the industrial technology and energy transition sectors. Hennessy...
Equites and crytpo trading platform eToro has reportedly filed for a traditional IPO two-and-half years after nixing its SPAC combination and its renewed thrust to the public markets could provide a useful demonstration of where things sit for SPACs in 2025. For one, eToro is reportedly making its IPO move at a valuation of $5...