ACE Convergence Asking Shareholders to Extend Deadline on $919M Tempo Automation Deal

ACE Convergence filed a prelimminary proxy in which it seeks a merger deadline extension from July 13 until Oct. 13 to close a pending deal with Tempo Automation, a software-accelerated electronics manufacturer.

ACE shareholders were set to vote on the transaction May 5, but it was postponed and the SPAC said it needed more time to complete the financing on the deal, which has a $919 million estimated post-transaction equity value.

When announced in April, ACE said the transaction would 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 in March 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.

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