The Latest SPAC News and Rumors: June 7th, 2021

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.

Aurora plans to merge with Reinvent Technology Partners Y, SPAC target Astra makes acquisition, and Israeli Prime Minister-designate to rake in $5 million from SPAC merger

Aurora Innovation Reportedly Next In Line For SPAC

Autonomous vehicle startup Aurora is close to finalizing a deal to combine with Reinvent Technology Partners Y, the newest SPAC launched by LinkedIn co-founder and investor Reid Hoffman, Zynga founder Mark Pincus and managing partner Michael Thompson.

According to TechCrunch, the valuation of Aurora, which includes PACCAR Inc. (NASDAQ: PCAR) and Volvo Group (OTC: VLVLY) as partners in its relatively recent expansion into commercial vehicle autonomy, could be valued at $12 billion to $20 billion.

Astra Acquires Apollo Fusion to Reach New Orbits

Space company Astra announced today its planned acquisition of electric propulsion engine manufacturer Apollo Fusion in a transaction valued up to $145 million.  This acquisition allows Astra to provide launch and space services beyond low Earth orbit, to medium Earth orbit, geosynchronous, and lunar orbits.

Under the agreement, Astra will acquire Apollo Fusion for a purchase price of $50 million: $30 million in stock and $20 million in cash. Additionally, there is potential for earn-outs of up to $95 million: $10 million in employee incentive stock, $10 million in cash for reaching technical milestones, and $75 million ($60 million in stock, $15 million in cash) for reaching revenue milestones. PJT Partners is acting as financial advisor to Astra in connection with this series of transactions, according to Businesswire.

The SPAC Phenomena as an Introduction Channel of Israel FinTechs To The World

In Israel, the fintech industry is taking advantage of the SPAC phenomenon as several companies finalize their plans to get acquired. According to Hadas Mishli from KPMG Israel, one of the main challenges in executing a SPAC deal is the structure of the transaction.

Although it is common that in certain jurisdictions the SPAC is the entity purchasing the target company, the simplest structure from an Israeli tax standpoint would be for the Israeli company to remain the parent company while the SPAC becomes its subsidiary, which can be achieved by a reverse triangular merger, according to The Fintech Times.

From an Israeli perspective, as the Israeli entity’s shareholders maintain their holdings of the target company, this restructuring process should not lead to immediate Israeli tax implications.

Israeli Prime Minister-Designate Naftali Bennett to Profit From Payoneer SPAC Merger

Israeli Prime Minister-designate Naftali Bennett is set to profit from a third tech exit with the SPAC merger of Israeli fintech company Payoneer. According to Forbes Israel, Bennett invested several hundred thousand shekels in Payoneer soon after it was founded, and is personally acquainted with the founder Yuval Tal and its COO and CEO Israel Keren Levy.  Forbes estimates that Bennett’s stake in Payoneer is worth over $5 million.