Duluth, Georgia-based special purpose acquisition company Spartacus (Nasdaq: TMTS) and geolocation technology provider Nextnav have entered into a merger agreement that would take the latter public and bring its potential market capitalization to $1.2 billion.
The boards of directors for both companies gave unanimous approval of the transaction, with an expected deal closure in the late third quarter or early fourth quarter of 2021, according to a joint statement released Thursday.
Nextnav has an office in McLean, Virginia, and offers its location-based platform for various applications such as public safety, emergency response and critical infrastructure management.
Ganesh Pattabiraman, president and CEO of NextNav, will lead the combined organization while Peter Aquino, chairman and CEO of Spartacus, will serve on the merged entity’s board.
“We started NextNav with a bold vision to build the next generation of GPS. Over the last decade, we implemented that vision and are well on our way to full deployment of this capability in the U.S,” Pattabiraman said.
Both parties forecast the combination to generate as much as $408 million in gross proceeds and plan to list the post-close entity on the Nasdaq stock market.
PJT Partners and Hogan Lovells respectively act as NextNav’s financial and legal advisers on the transaction.
B. Riley Securities provides financial and capital markets advice to Spartacus, while K&L Gates serves as the SPAC’s legal counsel.