Syniverse Technologies to go Public via $2.85 Bn Deal

Syniverse Technologies LLC, a telecom firm, plans to go public through a merger deal with a blank check company. This merger will give it an enterprise value of $2.85 billion.

Syniverse Technologies to go Public

In a statement on Monday, the blank check deal will provide Syniverse $1.17 billion in cash. This will happen via a combination of equity and equity-linked capital blank check firm M3-Brigade Acquisition II Corp. After the deal goes through, the new company will trade under the name Syniverse Technologies Corporation.

Incidentally, special-purpose acquisition companies (SPACs) such as M3-Brigade use the pool of capital raised through their IPOs to merge with a private company and take it public. The process typically happens within two years of listing.

However, the statement also said that the company's largest stakeholder, Carlyle Group, will retain its investment in the company; remaining the largest shareholder of the public company. Furthermore, Twilio Inc said in March that it would invest up to $750 million in Syniverse. After the merger deal, Twilio would become a minority owner of Syniverse.

Also, Syniverse's current CEO Andrew Davies and leadership team will continue to lead the company after the merger.

Lastly, the company has received a commitment for debt financing for a $1 billion term loan; this will come with a $165 million revolving credit facility which will be closed when the merger deal goes through.