Israel’s former Minister of Science and Technology Izhar Shay has given a vote of confidence to the fading special purpose acquisition company (SPAC) trend on Wall Street. To the hundreds of SPACs that have raised money over the past 18 months to seek new acquisition targets, a new company has joined which is focusing on Israel.
Israel Acquisitions Corp. has filed a prospectus with the US Securities and Exchange Commission (SEC) to raise $ 200 million on Nasdaq to find an Israeli tech company to merge with. The company, which is registered in the Cayman Islands, is led by chairman Izhar Shay. Alongside him is CEO Ziv Elul, who managed ad-tech company Fyber until it was sold for $ 600 million.
On the board of directors are Radwaye CEO Roy Zisapel, and Rhodium founder Daniel Recanati. The underwriters supporting the IPO are BTIG Bank, Exos Securities and Jones Trading.
SPAC’s are blank check companies that raise money in order to merge with an existing company during a limited amount of time. A SPAC merger offers companies an alternative route to go public instead of a conventional IPO.
The SPAC trend was strong in 2020 through to the second quarter of 2021but has since cooled due to tighter accounting regulation, and disappointment on many of the mergers completed last year
Israel Acquisitions Corp. says it is seeking an Israeli tech company with a valuation between $ 800 million and $ 1.5 billion with strong orders, rapid growth and the ability to speed up growth when exposed to public capital.
Israel Acquisitions Corp. believes that there are currently hundreds of Israeli tech companies in the pre-IPO stage that could be acquisition targets and that number is only expected to grow.
Israel Acquisitions Corp. is focusing on areas in which it believes there are attractive growth opportunities and cites a wide range of sectors: cloud computing, cybersecurity, deep technology, online commerce, electric vehicle technology, energy sector technology, fintech, food-tech and agritech, gaming, quantum computing and space and satellite technology.
Published by Globes, Israel business news – en.globes.co.il – on March 20, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.