'SPACS Attack' Weekly Recap: Looking Back At 11 Deal Announcements, New SPACs To Watch And Headline News

Chris Katje
·5 min read

The stock market brought several SPAC merger announcements, rumors and headlines throughout the trading week, as we covered on Benzinga’s "SPACs Attack" show.

Here is a look back at the deals announced, some new SPACs to watch and top headlines.

SPAC Deals

  • Additive manufacturing leader Markforged announced a SPAC deal with One (NYSE: AONE). The company counts Microsoft Corporation (NASDAQ: MSFT) and Porsche as investors and has a list of blue chip customers. Markforged had revenue of $70 million in fiscal 2020 and sees revenue growing at a compounded annual growth rate of 68% from fiscal 2021 to fiscal 2025.

  • Reinvent Technology Partners (NYSE: RTP) announced a merger with urban air mobility company Joby Aviation. The company’s eVTOL aircraft is planning to launch passenger service in 2024, targeting high urban traffic areas. Joby Aviation acquired a portion of Uber Technologies’ (NYSE: UBER) business and will partner with them on passenger service.

  • Robotics and automation solutions company Berkshire Grey announced a merger with Revolution Acceleration Acquisition Corp (NASDAQ: RAAC). The company has a pipeline of $1.7 billion in deals, including several blue chip customers. The company’s backlog represents 85% of fiscal 2021 guidance of $59 million and 40% of fiscal 2022 guidance of $119 million.

  • India’s largest renewable energy company ReNew Power is going public in an $8 billion deal with RMG Acquisition Corp II (NASDAQ: RMGB). The company has over 100 operational utilities in wind and solar energy. ReNew Power is the 12th largest global clean energy utility by capacity in the world. The company is projecting revenue of $699 million in fiscal 2021 and $952 million in fiscal 2022.

  • Battery company Enovix announced a $1.1 billion SPAC deal with Rodgers Silicon Valley Acquisition Corp (NASDAQ: RSVA). The company is targeting markets like laptops, land mobile radio, smartwatches, augmented reality and virtual reality with its batteries. Enovix is projecting revenue of $176 million in fiscal 2023, the first year of its factory production ramp-up.

  • The highly anticipated merger announcement came this week from Lucid Motors and Churchill Capital Corp IV (NYSE: CCIV). The deal valued Lucid Motors at $11.75 billion based on the $10 offering price. A $2.5 billion PIPE (Private Investment in Public Equity — a way to attract investment from accredited investors) saw investors value the company at $24 billion with shares priced at $15. The electric vehicle company is planning to bring the Lucid Air luxury car to market later in 2021.

  • Trident Acquisitions Corp (NASDAQ: TDAC) announced a definitive agreement to take Lottery.com public via SPAC. Lottery.com is projecting revenue of $71 million in fiscal 2021 and $280 million in fiscal 2022.

  • Apex Clearing is merging with Northern Star Investment Corp II (NYSE: NSTB). The merger values Apex Clearing at over $4.6 billion. The company is estimating revenue of $290 million for fiscal 2021.

  • Xos Trucks, a commercial electric vehicle company, announced a $1.5 billion SPAC deal with NextGen Acquisition Corp (NASDAQ: NGAC). The company has minimal revenue projected until fiscal 2022 when it expects to see revenue of $271 million.

  • Outpatient physical therapy company ATI Physical Therapy announced a SPAC deal with Fortress Value Acquisition Corp II (NYSE: FAII). The company saw revenue decline 25% year-over-year to $591 million in fiscal 2020 due to the COVID-19 pandemic.

  • Data center company Cyxtera announced a SPAC merger agreement with Starboard Value Acquisition Corp (NASDAQ: SVAC). The company has 61 data centers in 29 markets around the world. Cyxtera had revenue of $690 million in fiscal 2020.

Related Link: 9 Key Takeaways From The Lucid Motors SPAC Merger

SPAC Rumors

  • Bloomberg reports Vision+, the Netflix Inc (NASDAQ: NFLX) of Indonesia, is in talks to merge with Malacca Straits Acquisition (NASDAQ: MLAC).

  • IndiaTimes reports online grocery store Grofers in in talks with several SPACs including CF Acquisition Corp IV (NASDAQ: CFIV) for a possible deal to go public.

  • Metal mining company DeepGreen Metals is in talks to merge with Sustainable Opportunities Acquisition Corp (NYSE: SOAC).

  • DMY Technology Group Inc III (NYSE: DMYI) is in talks with quantum computing company IonQ on a possible SPAC merger.

  • New SPACs: Kensington Capital Acquisition Corp II (NASDAQ: KCACU) units began trading on Friday. The SPAC is from the same team that took QuantumScape Corp (NYSE: QS) public.

  • Fusion Acquisition Corp II (NASDAQ:FSNBU) units began trading on Friday. The team also has a pending merger with MoneyLion through its previous SPAC Fusion Acquisition (NYSE: FUSE).

  • Soaring Eagle Acquisition Corp (NASDAQ: SRNGU) raised over $1.5 billion in an offering last week. The SPAC comes from Harry Sloan and Jeff Sagansky, the same team that took DraftKings Inc and Skillz Inc (NYSE: SKLZ) public.

Headlines

  • Lion Electric and Proterra both signed electric bus deals during the week, which helped shares of their respective SPACs. Lion Electric, going public with Northern Genesis Acquisition Corp (NYSE: NGA), signed a deal with the Los Angeles School District. Proterra, going public with ArcLight Clean Transition Corp (NASDAQ: ACTC), signed a deal for 1,200 electric school buses over 10 years for a school district in Maryland.

  • Fisker (NYSE: FSR) made headlines several times during the week. The electric vehicle company announced a new partnership with Foxconn. Fisker also reported fourth quarter earnings where it highlighted 12,467 reservations for the Fisker Ocean electric SUV.

  • On Friday, former SPAC DraftKings Inc (NASDAQ: DKNG) reported fourth quarter revenue of $322 million. The figure was up 146% year-over-year and came in ahead of the Street consensus estimate of $233 million. DraftKings raised its full fiscal 2021 revenue guidance to a range of $900 million to $1 billion.

Be sure to tune into SPACs Attack, Monday through Friday, 11 a.m. EST. Below are links to the past week’s shows:

Disclosure: Author is long shares FSR, FSNBU, RTP, RMGB, CCIV, RAAC, SRNGU, SOAC and NGA.

Photo courtesy of Joby Aviation.

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