Telecoms services firm Syniverse Technologies LLC plans to go public through a merger deal with a blank check company that would give it an enterprise value of $2.85 billion.
The deal will provide Syniverse with up to $1.17 billion in cash, through a combination of equity and equity-linked capital, blank check firm M3-Brigade Acquisition II Corp said in a statement on Monday.
After the deal, the public company will be named Syniverse Technologies Corporation, and its stock will trade under the ticker “SYNV” on the New York Stock Exchange.Syniverse Technologies
Syniverse’s current majority shareholder, private equity firm Carlyle Group, will retain its investment and be the largest shareholder of the public company, the statement said.
Special-purpose acquisition companies (SPACs) such as M3-Brigade use the pool of capital raised through their IPOs to merge with a private company and take it public, typically within two years of listing.
Cloud-communications platform Twilio Inc said in March that it would invest up to $750 million in Syniverse.
After the merger deal, Twilio would become a minority owner of Syniverse.
Syniverse’s current Chief Executive Officer Andrew Davies and leadership team will continue to lead the company after the merger.
The company has also obtained committed debt financing for a new $1 billion term loan and a $165 million revolving credit facility to be completed at the closing of the merger.
Source: Reuters.com