Broadband firm Starry to go public in near-$1.7 billion SPAC deal

- Advertisement -


(Businesshala) – Stary Inc said on Thursday it has agreed to go public through a merger with blank-check firm Firstmark Horizon Acquisition Corp in a deal that would value the broadband service provider at $1.66 billion.

- Advertisement -

As part of the agreement, Stari will receive $452 million in cash, including $130 million through a private investment in public equity and a concurrent equity financing round from investors such as associates of Fidelity Management & Research Company, Tiger Global Management and Firstmark Capital . other.

- Advertisement -

The proceeds from the transaction will be used to develop and deploy Starry’s services across the United States and to pay down existing debt, the company said.

The Starry-FirstMark deal comes at a time when US capital markets have seen a slowdown in special purpose acquisition company (SPAC) mergers in recent months. Nevertheless, deal-making activity has set new records this year.

- Advertisement -

Firstmark, a SPAC backed by New York venture capital firm Firstmark Capital, raised $360 million through an upsized initial public offering in October last year.

The combined firm will be listed on a national exchange under the symbol “STRY” following the merger, which is expected to close by the first quarter of next year.

SPACs are shell companies that have no business operations, which are raised with the intention of merging with a private entity at a later date in an attempt to take it public bypassing a traditional IPO route.

Reporting by Sohini Poddar in Bengaluru; Editing by Uttaresh.V

.

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox