The merger with the blank check company gives the company an enterprise value of $2.85 billion
Around a month ago, rumours were circulating that Syniverse had entered talks with a special purpose acquisition company (SPAC) regarding a potential merger that would take the company public. At the time, the deal with M3-Brigade Acquisition II (MBAC) was valuing the company at around $3 billion, including $1.9 billion of debt.
Now, it seems that the deal will go ahead as reported, with the business carrying an enterprise value of $2.85 billion. Syniverse’s current majority shareholder, private equity firm Carlyle Group, will be the largest shareholder of the new Syniverse Technologies Corporation.
The deal will provide Syniverse with $1.17 billion in cash through a combination of equity and equity-linked capital. These funds will reportedly be used to substantially reduce the company’s debt, as well as investing in “data, machine learning and artificial intelligence technologies”.
This announcement follows a previously sizable investment in Syniverse earlier this year, with cloud communications specialist Twilio agreed to invest $500–750 million back in March. The merger will make Twilio a significant minority stakeholder in Syniverse.
“Syniverse’s solutions are integral in the mobile-centric 5G world, and we are pleased to be an early investor in the company’s next chapter of growth,” said Mohsin Y. Meghji, Chairman of the Board of Directors and Chief Executive Officer of MBAC. “With the company’s partnership with Twilio, the new capital, and enhanced balance sheet, Syniverse will be well-positioned to deepen its engagement with customers in key industry verticals, more effectively monetize the 5G revolution, and create long-term value for shareholders.”
Subject to regulatory approval, the deal will close before the end of 2021.
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