Report 24 Jan 2022

SPACs in Digital and Cloud - InBrief Analysis - Worldwide

New investment vehicles have gained popularity during the pandemic, such as SPACs (Special Purpose Acquisition Companies), which have also become known as “blank check companies”. The SPAC IPO process is basically a reversed merger: SPACs first raise money on the stock market with a promise to buy a company with pre-defined qualities, and only after raising the money do they find, then merge, with the target.
SPACs are mainly targeting tech and IT companies. While a SPAC brings benefits compared to a traditional IPO (speed, price, certainty), there are also some downsides (shareholding dilution, etc.).

 

Contents:

Management Summary

Introduction

How Does it Work?

  • What are the benefits of a SPAC for the acquired company?
  • What are the main drawbacks of SPACs compared to traditional IPOs?
  • What are the main fields of investment?

SPACs – a New Tool Offering Mixed Results

Case Studies of SPACs Targeting Digital Companies

  • IonQ, the first public-traded Quantum-as-a-Service pure player
  • Arquit Quantum Inc., a new way to envision quantum encryption
  • Matterport, Digital Twins and Metaverse
  • Thoma Bravo, a software private equity giant experimenting with SPACs
  • Airspan Networks, hardware and software provider for 4G and 5G networks
  • Promising SPACs

What's Next for SPACs?

PAC’s Recommendations

  • Recommendations for IT providers
  • Recommendations for IT investors