Vertex SPAC acquires Taiwan 17LIVE in $676M deal

Singapore's Vertex Technology Acquisition Corp (VTAC) is making headlines with its recent acquisition of live streaming platform, 17LIVE Inc. This landmark deal, valued at $676M, sets a new precedent in the burgeoning Asian SPAC hub.

• Trendsetter: This marks the first-ever acquisition of a private company by a SPAC, following the Singapore Exchange's approval of SPACs in 2021.

• Background: VTAC, which went public in 2022, has a proven track record, having raised approximately $200M to solidify their position in the market. The full implications of this deal could potentially elevate VTAC's value to $1.16B. This year, VTAC shares have enjoyed a 6.2% increase, a promising figure when contrasted with Singapore's benchmark stock index.

• Funding Options: In a bid to extend its financial reach, VTAC is exploring private funding options, attracting the interest of institutional and accredited investors.

• Target: 17LIVE, the focus of this acquisition, boasts an impressive half a million monthly active users and has remained profitable since 2020. Key markets for 17LIVE include Japan and Taiwan, and the platform reported an impressive $363.7M in revenue in 2022.

• 17LIVE IPO: With an IPO in sight, 17LIVE plans to expand into Southeast Asia and across the globe.

• The Deal: As part of the deal, 160.6 million new shares will be issued at $5.00 each, with an additional 24.4 million new shares expected once specific financial targets are achieved.

The deal is set to be finalized by the end of 2023, at which point 17LIVE will be rebranded as 17LIVE Group Ltd and commence trading on the Singapore stock exchange.

DBS is managing this transaction, with both DBS and UBS acting as joint financial advisers.