SPACInsider Logo
G Squared Ascend I Inc. (GSQD) Terminates Transfix Deal
G Squared Ascend I Inc. (GSQD) Terminates Transfix Deal
by Nicholas Alan Clayton on 2022-10-11 at 12:01am

G Squared Ascend I Inc. (NYSE:GSQD) announced this morning that it has mutually terminated its combination with digital freight software company Transfix and its sponsor will instead invest in the company privately.

The parties blamed “current public market conditions” for nixing the deal, which was announced over a year ago in September 2021. While the parties had not yet set a date for a completion vote, G Squared may have struggled to hit the deal’s $200 million minimum cash condition in this redemptions climate despite having a $60 million forward-purchase agreement and $50 million backstop.

But with the changing market appetites, this could have also simply been a case of the two sides unable to come together on a re-strike. Transfix grew revenue at a CAGR of 81% from 2016 to 2020, but at the time of the deal’s announcement, it did not expect to be EBITDA positive until 2024E. As such, it may have had to wait for a while before a market focused on cash generation would give it its due.

This could still wind up as a missed opportunity, however. The terms of Transfix’s pending private round with G Squared and fellow existing investor New Enterprise Associates have not been made public yet, but it seems likely that it will be at a valuation below the $1.05 billion envisaged in this deal.

In a similar scenario, ticket marketplace company Seat Geek terminated its combination with RedBall in June, which would have valued it at $2.0 billion pro forma equity value with $100 million in committed capital from a combination of a private placement and PIPE. SeatGeek then turned around and raised $238 million in a private Series E at a valuation at $1 billion pre-money.

Should either company seek to go public again, it will have been after one more round of dilution and possibly on less favorable terms than they had in hand. G Squared, meanwhile, will be gaining an increased share in Transfix in either scenario, but its SPAC is now in a less favorable position coming up on a February 9, 2023 transaction deadline in what may still be a difficult market to extend with low redemptions.

Recent Posts
by Marlena Haddad on 2022-11-28 at 12:02am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News:  Virgin Galactic appoints new top lawyer, Trump Media SPAC rises after investors approve merger deadline extension, and Al Maadeed to be first Qatari to list company on NYSE Virgin Galactic, Preparing for Liftoff,...

by Nicholas Alan Clayton on 2022-11-25 at 2:31pm

PMV Consumer (OTC PINK:PMVC) announced that it is redeeming all non-insider public shares for approximately $10.09 per share, but it will not be dissolving just yet. The SPAC is set to provide written redemption notices to each shareholder and trust proceeds are to be distributed within 30 days of these notices. PMV Consumer will then...

by Marlena Haddad on 2022-11-25 at 11:02am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Ex-Marvel chief takes the wheel at Arrival, Paysafe plans reverse stock split, and Dave Inc. to pursue a bank charter Founder of troubled electric van maker Arrival steps aside as CEO The founder...

by Nicholas Alan Clayton on 2022-11-25 at 7:31am

Digital World (NASDAQ:DWAC) announced late Wednesday that its shareholders have approved amending its charter to allow for automatic three-month extensions of its transaction deadline until September 8, 2023. This brings to close a long drama during which Digital World adjourned the vote without concluding business six times at different meetings in September, October and November....

by Marlena Haddad on 2022-11-23 at 4:49pm

Venus Acquisition Corp. (NASDAQ:VENA) announced this afternoon that it has secured an investor for a backstop agreement in connection to its business combination with VIYI Algorithm. Venus and its sponsor, Yolanda Management Corporation, entered into a backstop agreement with Joyous JD Limited to purchase VENA shares from third parties through a broker in the open market, or...

Privacy Policy|Terms Of Use
Copyright © 2022 SPACInsider, Inc. All Rights Reserved