Forbes to go public through $630m Spac deal
The publisher behind Forbes magazine has unveiled plans to go public through a blank-cheque deal that will value the company at $630m (£460m).
The merger with Magnum Opus Acquisition Limited will raise around $600m for the business information brand.
The deal also includes $400m in Pipe [private investment in public equity] funding that includes funds and accounts managed by major institutional investors.
Forbes said the Spac deal, which is expected to close in the fourth quarter 2021 or early next year, will help it accelerate its digital transformation.
The company’s existing management team will continue to lead the combined business under chief executive Mike Federle, while new independent members of the board of directors will be announced at a later date.
“Leveraging our iconic global brand, Forbes has been executing a data-led platform strategy and is fast becoming the gateway for businesses, entrepreneurs and consumers to join the conversations and participate in the trends that are shaping the world today,” said chief executive Federle.
“With this transition into a publicly traded company, Forbes will have the capital to accelerate growth by executing its differentiated content and platform strategy and fully realise the potential of our iconic brand.”
Assuming no redemptions by the public shareholders of Magnum Opus, Forbes shareholders will own approximately 22 per cent of the combined company at closing.
Forbes, which will list on the New York Stock Exchange, will be capitalised with up to $145m in cash.
The deal is the latest in a string of blank-cheque deals as companies increasingly use the method to join public markets.
It comes after fellow online publisher Buzzfeed announced plans to go public via a $1.5bn US Spac deal.