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SVAC Stock: 12 Things to Know About Starboard Value Acquisition and the Cyxtera SPAC Merger

Starboard Value Acquisition (NASDAQ:SVAC) stock is up on Monday after announcing a special purpose acquisition company (SPAC) merger with Cyxtera.

two businessmen shaking hands with peers at their side
Source: Shutterstock

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.


Article printed from InvestorPlace Media, https://investorplace.com/2021/02/svac-stock-12-things-to-know-about-starboard-value-acquisition-and-the-cyxtera-spac-merger/.

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