Michael Dell, chairman and CEO of Dell Technologies (NYSE: DELL), has formed a special purpose acquisition company – MSD Acquisition Corp. – that plans to raise $575 million in funds through an initial public offering, CRN reported Monday.
MSD Acquisition intends to offer 50 million investment units at $10 apiece through the IPO with plans to have them listed on Nasdaq using the ticker symbol “MSDAU.”
The founding partners of MSD Acquisition include executives from MSD Partners and MSD Capital, including Gregg Lemkau, CEO of MSD Partners; John Phelan, co-founder of MSD Capital; and John Cardoso, chief investment officer of MSD Partners. The Dell Technologies chief executive serves as strategic adviser of the SPAC
A SPAC, also known as a “blank check” company, secures funds through an IPO with the purpose of buying a private entity that becomes public following an acquisition or merger deal.
“Our acquisition and value creation strategy is to identify, acquire and—after our initial business combination—serve as a trusted, long-term partner to accelerate a company’s growth in the public markets,” MSD Acquisition said in its Securities and Exchange Commission filing.
MSD Partners and MSD Capital have agreed to purchase up to 5 million investment units at $10 each once the blank check company makes its first merger transaction. To date, MSD Acquisition has not yet selected any company to acquire or merge with.