The SPACs are Spreading Green Across the Land

Dear friends and colleagues:

As the leprechauns frolic in the streets on St Patty’s Day the SPAC party continues on. 49 new filings and 46 IPOs in the last two weeks as well as 13 announced or completed acquisitions, 10 of which are down. While the ’21 deals are down 4% from their pre-announcement value they are up a solid 16% from their IPO pricing. The market has been bidding up these SPAC shells in anticipation of a good deal coming, then drift off after they are announced.

We are now up to 429 Tech SPACs for 2020 & 2021. The revenue multiples are rising from 9.8x for all of ’20 to 11.5x in ’21. Last week’s five announced acquisitions were all done at a fast pace with a median span of 4.6 months between IPO and the deal announcement. The 324 tech SPACs IPOed and filed with $700B of buying power will be canvassing the world for worthy acquisitions providing lots of viewing excitement for the rest of the year.

Please feel free to reach out with any questions or comments.