Shell company Vertex Tech to Acquire Streaming Platform
Singapore's Vertex Technology Acquisition Corp (VTAC) has announced its plans to acquire live streaming platform 17LIVE Inc in a deal worth up to S$925.1 million ($676 million).
VTAC, a special purpose acquisition company (SPAC) backed by state investor Temasek, will be making history with this landmark purchase, as it marks the first acquisition of a private company by a SPAC listed in Singapore since 2021.
The move comes after the Singapore Exchange allowed SPACs, also known as shell firms, to float shares in an effort to establish itself as a hub for this type of vehicle in Asia. VTAC, which went public in early 2022 and raised approximately S$200 million, will see the pro-forma equity value of the proposed deal reach up to S$1.16 billion.
In addition to the acquisition, VTAC will also raise funds through a private placement with institutional or accredited investors. The company expects to complete the necessary approvals for the deal by the end of 2023, after which it will be renamed 17LIVE Group Ltd and trade on the Singapore stock exchange.
17LIVE, chaired by Joseph Phua, is set to benefit from the listing as it aims to expand its presence in Southeast Asia and globally. With over half a million average monthly active users in the first half of fiscal 2023, the streaming platform has established itself in key markets such as Japan and Taiwan. It generated $363.7 million in revenue in 2022 and has been profitable since 2020.
VTAC's CEO, Jiang Hong Hui, expressed confidence in the future prospects of 17LIVE, stating, "We see 17LIVE as a company at its inflection point, backed by a strong management bench."
The acquisition of 17LIVE by VTAC highlights Singapore's growing prominence as a destination for startup investors, unicorns and IPOs. This groundbreaking deal not only showcases the potential of SPACs in the city-state but also demonstrates the country's commitment to fostering innovation and growth in the technology sector.
Singapore's Vertex Technology Acquisition Corp (VTAC) will acquire live streaming platform 17LIVE Inc for up to S$925.1 million ($676 million).
This marks the first acquisition of a private company by a SPAC listed in Singapore since 2021.
VTAC went public in early 2022 and raised about S$200 million.
The pro-forma equity value of the proposed deal is up to S$1.16 billion.