Spire Global, a space to cloud data analytics company, announced that it will go public through a merge agreement with an SPAC.
Founded in 2012, the company identifies and tracks movement of the world’s resources and weather systems in order for businesses to make smart decisions. Its infrastructure includes a wholly owned and developed constellation of nanosatellites called LEMUR (Low Earth Multi-Use Receiver), global ground station network and 24/7 operations; this helps provide real-time global coverage of every point on Earth, and happens over 100 times per day.
The merge will occur with NavSight, a newly organized blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Spire Global said that it plans to use the funds from the merger to grow its business; this includes expanding its sales team, reaching new geographic markets, and also acquiring more capabilities through software or data analysis acquisitions.
Once the deal closes this summer, Spire Global will list itself on the New York Stock Exchange (NYSE) under the ticker, SPIR.
A Word From The Companies
In a press release, Spire Global CEO and Co-Founder Peter Platzer talked about the company’s excitement for its continued growth.
“Spire was founded nearly a decade ago to help lead, inspire, and create the business of space-based data. Today, our proprietary data and solutions help customers solve some of earth’s greatest challenges,” he said. “This transaction funds these growth plans and allows us to pursue, on a more aggressive timetable, this massive and growing long-term opportunity ahead of us.”
Bob Coleman, Chairman and CEO of NavSight, also expressed his thoughts on the merger.
“Spire is leading the way with its modern SaaS-based approach to meet the significant, growing demand for space-based data,” he said. “We look forward to working together to build long-term value for Spire stockholders.”
Going Public Via SPAC
So Spire Global plans to go public via SPAC, but what exactly does that mean?
SPAC stands for Special Public Acquisition Company. Basically, they act as shell companies that investors set up set up with the sole purpose of raising money through an IPO to eventually acquire another company.
Furthermore, SPACs have no existing business operations, so they don’t sell anything nor do they make their own products; the only assets they have include their own cash and limited investments, as well as the money they raise through their own IPOs.
The boom of using SPACs to go public emerged as the COVID-19 pandemic saw the stock market become extremely volatile. Some days would be way up, while others would be way down, causing some companies to pause their IPOs altogether. Others, however, saw it as a chance to merge with a SPAC and gain a quicker capital influx. Going public with a SPAC also means that the process goes by faster, as opposed to a traditional IPO.
Several companies that went public in the last few years used SPACs, including WeWork, DraftKings, Opendoor and more. CNBC also reported that digital media companies like BuzzFeed and Vice Media could potentially go public via SPACs.
