Israeli digital intelligence company Celebrity announced it would meet on the Nasdaqu by merging SPAC with TWC Tech Holdings II Corp. (Nasdaq: TWCT), estimated by the company at $ 2.4 billion. The Petah Tikvi-based company provides digital notification solutions to law enforcement agencies and governments.
Special Purpose Acquisition Companies (SPACs) are empty check companies without any of their own operations, which raise money only to merge with the target company. Since December, the mergers of Israeli technology companies with SPACs have accounted for companies valued at more than $ 40 billion, most of which have yet to be completed.
$ 580 million in cash will be available to Cellebrite upon completion of the merger of SPAC, which consists of TWC Tech Holdings ’cash held in confidence, assuming no shareholders buy back the money. Upon closing, TWC Tech Holdings shareholders will receive a combination of cash and shares in Cellebrite. The transaction involves a private investment of about $ 300 million in ordinary Cellebrite shares that will be purchased directly from existing Cellebrite shareholders, who are primarily from early investors in the company and who are expected to close in parallel by merging TWC Tech Holdings. are subsidiaries of the company. Leading institutional investors, including Light Street Capital and Makena Capital, and strategic investor Axon Enterprise, Inc., participated in the private investment.
Cellebrite was founded in 2001 by Yaron Baratz, Yuval Aflalo and Avi Yablonka, and is run by CEO Yossi Carmil. Japan Sun Corp. In 2007, it bought Cellebrite for only $ 17 million. Carmill told Globes in the past why the company was sold for such a small amount. “The major shareholders, the three founders, wanted to sell. We were sold very cheaply to a company that was growing without raising outside capital. We are a rare story.”
In 2019, the Israeli Growth Partners (IGP) led $ 110 million in Cellebrite at the company’s estimated $ 440 million, which was in fact the company’s first round of funding. As part of the SPAC merger, Haim Shani of IGP will become president of Cellebrite. Ryusuke Utsumi will resign but remain on the board.
BofA Securities and JP Morgan Securities LLC act as placement agents for Cellebrite and TWC Tech Holdings. BofA Securities also serves as a capital market advisor to TWC Tech Holdings. Law firms White & Case LLP and Meitar serve as Cellebrite’s legal advisors, while Herzog Fox Neeman will support SPAC.
Carmil said, “Cellebrite’s vision is to provide industry-leading technology and a holistic DI solution that enables our customers to transform and digitize their entire investigation process. Today is an exciting step for our company and team, and will lead us to even better results. transactions, we will strive to upgrade our leadership position with strategic, targeted investments to expand our capabilities, deepen our position in the public sector and attract new customers in the growing private sector market. It is important to recognize the enormous responsibility that comes with doing business in partnership with law enforcement agencies, but protecting privacy To this end, Cellebrite and our board are deeply committed to creating a safer world and operability g in a legal and ethical way that is steadfast. “
TWC Tech Holdings CEO Adam Clammer said: “At True Wind Capital, we are focused on investing in leading technology companies, and the Cellebrite opportunity marks all the frames on our wish list for long-term investment in a public company. Cellebrite empowers the public and private sector customers to drive the digital transformation of the investigation process through its advanced technology.It is important that Cellebrite technology helps bring justice to victims of crime, including child exploitation, violent crimes such as murder and sexual assault, drug and human trafficking, fraud and financial crime.We are proud that we are partners with a company that has a real impact on these issues. “
Posted by Globes, business news in Israel – en.globes.co.il – April 8, 2021
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