NEW YORK - Investcorp AI Acquisition Corp. (NASDAQ:IVCA), a special purpose acquisition company, has entered into a definitive agreement to merge with Bigtincan Holdings Limited (ASX:BTH), a sales enablement software developer. Upon completion, the combined entity will operate under the name Bigtincan Limited and plans to list on the Nasdaq Stock Market.
The transaction implies a pre-money equity valuation of Bigtincan at approximately $275 million. As part of the merger, Investcorp, an affiliate of IAAC's sponsor, will invest $12.5 million into the newly formed company, Bigtincan Limited. Additionally, Bigtincan Limited seeks to raise up to $25 million from institutional investors through a Private Investment in Public Equity (PIPE) transaction and up to $25 million of debt financing to support the merger.
Bigtincan shareholders are expected to own roughly 75% of Bigtincan Limited post-transaction, depending on cash elections by shareholders, PIPE investment, and redemptions by IAAC shareholders. A partial cash election alternative is also being proposed, offering Bigtincan shareholders $0.16145 per share in cash, subject to funds availability and scaling mechanisms.
Harsh Shethia, an advisor to IAAC, highlighted the transaction's potential to showcase Australian AI innovation and position Bigtincan as a global leader in enterprise software. The deal is anticipated to leverage Investcorp's strategic investment strategy in AI technologies, with plans to establish an AI Technology Development Centre in Hobart, Tasmania, around existing Bigtincan resources.
The merger is subject to customary closing conditions, including approval by Bigtincan shareholders, the Australian Foreign Investment Review Board, and the United States Securities and Exchange Commission (SEC), as well as the listing of Bigtincan Limited shares on the Nasdaq.
The board of directors of IAAC has unanimously recommended the transaction to its shareholders. The next steps involve filing a registration statement with the SEC, which will include a proxy statement of IAAC and a prospectus for Bigtincan Limited shares. IAAC shareholders do not need to take any action at this stage.
Bigtincan is a global software group focused on sales enablement and engagement, serving clients including Fortune 500 companies. The company's global go-to-market strategy is led from Boston, Massachusetts, with customer-facing resources worldwide.
This merger announcement is based on a press release statement and does not constitute financial advice or an offer to sell or buy securities. The information presented is for informational purposes only.
In other recent news, Investcorp India Acquisition Corp has made significant strides in its financial governance strategies and operational timeline. The company has waived its right to claim up to $100,000 of interest earned on the funds in its Trust Account, a move indicating its commitment to safeguarding assets for investors. This decision affects the management of the Trust Account, a crucial aspect of a Special Purpose Acquisition Company's (SPAC) structure.
Furthermore, Investcorp India Acquisition Corp has extended its deadline for completing its initial business combination from August 12, 2024, to May 12, 2025. This decision was approved by a significant majority of shareholders during an extraordinary general meeting, with 10,873,334 votes in favor and 2,171,671 against.
Alongside this, shareholders exercised their rights to redeem 8,314,006 Class A ordinary shares at approximately $11.40 each, totaling around $94.78 million. Additionally, the company's sponsor, ICE (NYSE:ICE) I Holdings Pte. Ltd., opted to convert 6,468,749 Class B ordinary shares into Class A ordinary shares. These recent developments indicate noteworthy changes within the company's operational timeline and shareholder activity.
InvestingPro Insights
As Investcorp AI Acquisition Corp. (NASDAQ:IVCA) prepares for its merger with Bigtincan Holdings Limited, investors may find value in examining some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, IVCA has a market capitalization of $188.6 million, which is lower than the pre-money equity valuation of Bigtincan at approximately $275 million mentioned in the merger agreement. This discrepancy could potentially indicate an opportunity for value creation post-merger.
An InvestingPro Tip suggests that IVCA is trading near its 52-week low, which might be of interest to investors considering the upcoming merger. This could potentially offer an attractive entry point for those bullish on the combined entity's prospects.
Another relevant InvestingPro Tip indicates that IVCA has been profitable over the last twelve months. This profitability could provide a solid foundation for the merged company as it seeks to expand its operations and invest in AI technology development.
It's worth noting that InvestingPro offers additional tips and insights that could be valuable for investors analyzing this merger. There are 7 more tips available for IVCA on the InvestingPro platform, providing a more comprehensive view of the company's financial health and market position.
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