ACE Convergence Acquisition has called a May 5 meeting for stockholders to vote on its proposed merger with Tempo Automation, a software-accelerated electronics manufacturer. The SPAC also said its registration statement on the deal has been declared effective by the SEC.
The deal has a $919 million estimated post-transaction equity value.
The transaction could provide cash proceeds of more than $500 million from several sources:
- $230 million from cash in trust by ACE, assuming no redemptions by shareholders.
- $82 million fully committed PIPE anchored by Point72 Ventures Investments and ACE Equity Partners with participation from Firsthand Funds and Lux Capital.
- Tempo also has $200 million in convertible notes financing, most of it from Oaktree Capital.
In addition, the companies announced last month that they had acquired a $100 million equity facility for post-merger needs. The equity facility would be provided by an affiliate of Cantor Fitzgerald. Read more.
