In SPAC news this week, Redbox announced that it has entered into a definitive agreement to combine with Seaport Global Acquisition, while Bright Machines is reportedly nearing a merger with SCVX Corp. to go public.

REDBOX, SEAPORT GLOBAL SPAC MERGER: Redbox (RDBX) announced that it has entered into a definitive agreement to combine with Seaport Global Acquisition (SGAM), a publicly traded special purpose acquisition company. The transaction will result in Redbox becoming a publicly traded company with an enterprise value of $693M. As part of the transaction, all existing shareholders will roll 100% of their equity in Redbox, including funds managed by affiliates of Apollo Global (APO), which acquired Redbox through the acquisition of Outerwall in September 2016. Upon close of the combination, these existing shareholders will hold approximately 59% of the outstanding common stock. The transaction has been unanimously approved by the board of directors of Seaport Global Acquisition and Redbox and is expected to close in the third quarter, subject to the satisfaction of customary closing conditions. The transaction, which values Redbox at an enterprise value of $693M, will be funded by a combination of $145M of cash held in the trust account of Seaport Global Acquisition, and a fully committed PIPE of $50M. Upon completion of the transaction, Redbox expects to have approximately $209M in cash that will be used to pay down existing debt and fund digital expansion, content acquisition and marketing initiatives.

BRIGHT MACHINES NEARING SPAC DEAL: Bright Machines is nearing a merger with a special-purpose acquisition company to go public in a deal that would value the manufacturing-automation business at about $1.6B, The Wall Street Journal's Amrith Ramkumar reported, citing people familiar with the matter. The creator of a platform that uses artificial intelligence and robotics to automate tasks in electronics manufacturing is close to a deal with SCVX Corp. (SCVX), the people said.

Bloomberg's Gillian Tan reported on May 21 that Wejo, a U.K. automotive-data startup backed by General Motors (GM), is in discussions to go public via a merger with special purpose acquisition company Virtuoso Acquisition Corp. (VOSO). The SPAC is looking to raise new equity to support a deal with a combined enterprise value of over $1B, though terms could change and it's possible the talks could fall through, Tan said, citing a source.

COVERAGE INITIATIONS:

Benchmark analyst Mark Schappel initiated coverage of TS Innovation Acquisition (TSIA) earlier this week with a Buy rating and $16 price target. The special purpose acquisition company, or SPAC, is in the process of merging with Latch, a provider of smart access and building operating systems for multi-family apartments, Schappel noted. He likes Latch's exposure and leadership in the rapidly growing property technology market, as he believes the market opportunity for smart apartment building systems is "enormous."


SPAC IPOs this week:

• Graf Acquisition IV (GFOR) opened on May 21 at $9.93. The company expects to focus on all industries that "meet its business combination criteria and that leverages the management team's relationships, experience and insight, including without limitation, targets in industries such as mobility, technology, transportation, new energy, software, infrastructure, consumer, defense and cybersecurity, business and real estate services, financial and data services, healthcare, diversified industrial manufacturing, technology, distribution and services, as well as companies that help to address evolving environmental, social and governance related issues."
• Skydeck Acquisition (SKYA) opened on May 19 at $9.88. The company expects to focus on media, technology, communications and digital health companies in the United States and other regions that "satisfy public investor demands for high-growth businesses and leverages the management team's relationships, experience and insight," it said.
• Aries I Acquisition (RAM) opened on May 19 at $9.90. The company intends to focus its initial business combination search on the following industry segments: aerospace, satellites, and space exploration; quantum computing and chemistry; artificial intelligence and machine learning; cybersecurity; and blockchain and digital currencies.
• Catalyst Partners Acquisition (CPAR) opened on May 18 at $9.91. The company intends to invest in an "innovator or innovators focused on building an enduring company in the enterprise software sector."
  
• Montain Crest Acquisition III (MCAE) opened on May 18 at $10. The company intends to focus on operating businesses in North America.
• Angel Pond (POND) opened on May 18 at $9.81. The company intends to focus on target businesses within the Greater China region, especially on companies within technology-enabled sectors, including, but not limited to, e-commerce, enterprise software and cloud computing, and fintech.

"On the Fly: The Week in SPAC News" is The Fly's new recurring series of stories on the latest SPAC initial public offerings, SPAC deal news, and associated analyst commentary.