BigBear.ai has agreed to merge with special purpose acquisition company GigCapital4 (Nasdaq: GIG) in a deal that will take the Columbia, Maryland-based data analytics company public with an enterprise value of approximately $1.57 billion.
Both parties expect to complete the transaction in the third quarter of 2021 and Reggie Brothers, CEO of BigBear.ai, will lead the combined organization that plans listing on the Nasdaq stock market, according to a joint statement released Friday.
As part of the agreement, BigBear.ai’s investors and private equity owner AE Industrial Partners will own 73 percent of the future public company while sponsors of GigCapital4 will collectively hold 6 percent and public stockholders in the merged entity will own the remaining 21 percent.
“In GigCapital4, we found a like-minded strategic partner that shares our vision for the future of data-driven decision dominance, and this business combination will help us drive growth as a public company,” said Brothers, a GovCon Expert and 2021 Wash100 Award recipient.
Brothers noted that BigBear.ai-built technology works to help government customers make decisions based on data and the company also sees potential commercial sector applications for its artificial intelligence-based platform.
The analytics technology provider launched in February via the merger between NuWave Solutions and PCI Strategic Management, both portfolio companies of AEI.
BigBear.ai, which generated $140 million in 2020 revenue, forecasts sales to reach $182 million in 2021 and hit $764 million in 2025.
William Blair, Kirkland and Ellis and Grant Thornton serve as BigBear.ai’s financial adviser, legal counsel and auditor on the transaction, respectively.