Starboard Value Acquisition (NASDAQ:SVAC) stock is up on Monday after announcing a special purpose acquisition company (SPAC) merger with Cyxtera.
Here’s everything potential investors in SVAC stock need to know about the upcoming SPAC merger with Cyxtera.
- Starboard Value Acquisition is a blank-check company sponsored by Starboard Value LP affiliate SVAC Sponsor LLC.
- Cyxtera is a data center company that specializes in retail colocation and interconnection services.
- The company was created split from CenturyLink’s data center and colocation business in 2017.
- Since then the company has grown to become the largest privately-held data center provider of retail colocation services in the world.
- The SPAC merger between the two companies implies an enterprise value of $3.4 billion for Cyxtera.
- It will also provide the company with $654 million in net proceeds.
- This comes from $404 million of cash held in trust by Starboard Value Acquisition and $250 million from a private investment in public equity (PIPE).
- Both companies Boards of Directors have given their unanimous support to the SPAC merger.
- Now it just needs approval from regulators and shareholders before it reaches completion.
- So long as the deal doesn’t run into any trouble, the SPAC merger is expected to close in mid-2021.
- Starboard Value Acquisition will change its name to Cyxtera Technologies when this happens.
- The announcement today doesn’t mention if SVAC stock will change to a new ticker after the merger is complete.
SVAC stock was up 1% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.