Special Purpose Acquisition Companies (SPACs) Business Combinations Supported by Nasdaq

OOn the heels of two record setting years of SPAC issuances, Nasdaq continues to see strong demand for SPAC IPOs and even eclipsed 100 such offerings earlier this year.

SPACs – or Special Purpose Acquisition Companies – are publicly-traded investment vehicles that raise funds via an IPO in order to complete a targeted acquisition. They enable private companies to have a unique way to access growth capital in the public markets, while offering investors a way to co-invest side-by-side with best-in-class sponsors.

Executing a successful IPO is only the first step for a SPAC. Once an acquisition target has been identified and a deal has been announced, all focus shifts to ensuring a successful business combination and transition to a publicly traded operating company.

In addition to providing the most efficient platform for SPACs to IPO, Nasdaq is dedicated to providing timely advice and support to SPACs, their sponsors, and their targets to ensure a smooth public market debut for their business combination. In fact, we have recently welcomed our 50th successful business combination to Nasdaq.

Converge 1

John A. McKenna Jr., Chairman, Chief Executive Officer, and the ConvergeOne Holdings, Inc. team rang the Nasdaq Opening Bell on March 14, 2018 following the recent completion of its merger with Forum Merger Corporation. ConvergeOne (Nasdaq: CVON) is global IT service provider of collaboration and technology solutions.


Playa 2

Playa Hotels & Resorts N.V. Chairman and CEO Bruce Wardinski joined Nasdaq’s SVP of Listing Services Bob McCooey for a Facebook Live interview at the Nasdaq MarketSite in Times Square ahead of the company’s Closing Bell Ceremony on March 13. Watch the interview here.

On the regulatory side, Nasdaq guides our clients through the various qualification issues that are unique to business combinations. Our position as the industry leader in supporting business combinations allows us to be informed and responsive when our clients have inquiries. As the market leader, we also are able to most effectively solicit feedback amongst industry participants and be the leading voice to advocate changes with the SEC.

Nasdaq is also focused on helping business combinations make a seamless transition to the public markets. Through our market leading investor relations (IR) intelligence services, we assist companies in building their IR programs and preparing for life as a public company. Beyond capital markets support, Nasdaq also provides post transaction visibility services that helps to raise the profile of the combined entity to investors and customers.

Nasdaq remains committed to supporting SPAC business combination and SPAC listings and their advisors. For more information please contact Global Head of SPAC Listings Eklavya Saraf Eklavya.Saraf@Nasdaq.com.


Converge 3

On March 13, Playa Hotels & Resorts N.V. (“Playa”) visited the Nasdaq MarketSite in Times Square to ring the Nasdaq Closing Bell. Playa (Nasdaq: Playa) previously combined with TPG-backed Pace Holdings, and is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in Mexico and the Caribbean.

The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security, sector or an overall investment strategy. Neither Nasdaq nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding sector performance and specific companies are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

Related Links

Nasdaq Continues Momentum with 100th SPAC Listing

Nasdaq Welcomes Venture-backed SPAC Draper Oakwood Technology Acquisition

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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