Forbes To Go Public Via $630 Mln SPAC Deal
Media company Forbes Global Media Holdings Inc. is set to become a publicly listed company through a $630 million business combination deal with Magnum Opus Acquisition Ltd. (OPA), a publicly traded special purpose acquisition company or SPAC.
The combined company will retain the Forbes name and is expected to list on the New York Stock Exchange under the ticker symbol “FRBS.” It will continue to be led by the current management team, under the leadership of Chief Executive Officer Mike Federle. It will announce new, independent members to its Board of Directors at a later date.
“With this transition into a publicly traded company, Forbes will have the capital to accelerate growth by executing its differentiated content and platform strategy and fully realize the potential of our iconic brand,” said Federle.
The combination will enable Forbes to further capitalize on its successful digital transformation, using technology and data-driven insights to create more deeply engaged audiences, and associated high-quality and recurring revenue streams.
The transaction, approved by the boards of directors of both Forbes and Magnum Opus, values the combined company at an implied pro forma enterprise value of $630 million, net of tax benefits. It is expected to close in late fourth quarter 2021 or early first quarter 2022, subject to the satisfaction of customary closing conditions, including the approval of Magnum Opus’ shareholders.
Upon closing, the transaction is expected to provide the combined company approximately $600 million of gross proceeds, including up to approximately $200 million of cash held in Magnum Opus’ trust account and $400 million of additional capital through a private placement of ordinary shares of the combined company (PIPE) priced at $10.00 per share from funds and accounts managed by top-tier institutional investors.
The existing Forbes shareholders are expected to retain ownership of approximately 22 percent of the combined company at closing. Forbes will be capitalized with up to $145 million in cash.
Forbes, an iconic business information brand, reaches more than 150 million people worldwide through its trusted journalism, signature LIVE events, custom marketing programs and 45 licensed local editions covering 76 countries. Forbes’ brand extensions include real estate, education and financial services license agreements. Through its digital platforms, Forbes is among the top 50 most visited websites on the internet.
“The Forbes platform is defined by high-quality, high-impact journalism, product offerings and a loyal user base,” said Jonathan Lin, Chairman and CEO of Magnum Opus.
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