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Next-generation GPS company NextNav brings SPAC contract to public

NextNav Holdings LLC is approaching a merger with a special acquisition company. Next-generation GPS According to people familiar with the matter, the company is a civilian and is valued at around $ 1.2 billion.

Founded in 2007, NextNav states that it can identify specific indoor locations for devices, such as which floor of the building the platform is on.Vertical positioning data is provided by regulators 911 Improve response to emergency calls Consumer applications can also be used in urban areas, such as games and transportation, where specific locations on the device are required. NextNav owns a license to use wireless radio waves that support nationwide communications networks.

McLean, Virginia company is approaching a deal to merge with SPAC

Spartacus Acquisition Corporation,

TMTS -0.11%

People said. Spartacus focuses on trading in the technology, media and telecommunications industries. This combination will be announced in the coming days.

NextNav is expected to generate approximately $ 410 million in cash through the transaction from the funds held by SPAC and private investment in public equity (PIPE) associated with the merger, they said. PIPE investors in this transaction will include Koch Strategic Platforms, a subsidiary of Koch Investments Group, and funds managed by Fortress Investment Group.

NextNav’s existing investors include funds managed by Fortress and funds managed by Goldman Sachs Asset Management. Gary Parsons, the founder of XM Satellite Radio, chairs the Board of Directors of NextNav.

SPACs like Spartacus are shell companies listed on the exchange to acquire and publish private companies. They are also called blank check companies. The merger with SPAC has become a popular way for startups to quickly raise large sums of money and access investors who are excited about speculative technology. One of the reasons is that the merger of SPACs allows startups to make predictions about their business. This is not allowed in a regular IPO.

According to data provider SPAC Research, SPAC has raised about $ 105 billion so far in 2021, surpassing last year’s record of $ 80 billion. The total for 2020 exceeded the amount previously raised in the nearly 30-year history of the SPAC market.

While some companies that publish through blank check companies have become popular investments for individual investors, many experts are betting that they are overvalued and that stock prices will fall. That tension has driven volatility, putting some of the SPAC-related companies at the heart of recent day trading frenzy. Just this week, shares in Clover Health Investments Corporation. More than double before sliding Wednesday is 24%.

Another example of the risk of investing in a particular company that merges with a SPAC is Electric truck startup Lordstown Motors Corp. warned on Tuesday that it did not have enough cash to start production and was uncertain if it could continue operations.

Write to Amrith Ramkumar at amrith.ramkumar@wsj.com

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On June 10, 2021, it was published in the print version as “GPS Firm NextNav To List ViaSPAC Merger”.

Next-generation GPS company NextNav brings SPAC contract to public

Source link Next-generation GPS company NextNav brings SPAC contract to public

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