Digital freight platform Transfix and G Squared Ascend I extended the outside date to complete their proposed merger to Nov. 3.
In tandem with the extension, funds affiliated with the SPAC will provide $50 million of guaranteed financing to Transfix on an accelerated timeline on or before Sept. 30, under a Forward Purchase Agreement. In addition, G Squared agreed to provide Transfix with up to an additional $50 million of committed capital whether or not the proposed merger closes.
The transaction implies a pro forma enterprise value for Transfix of $1.1 billion. Upon closing, existing Transfix shareholders are expected to own approximately 69% of the combined company, with G Squared Ascend I stockholders owning about 24%.
G Squared Ascend I’s sponsor has agreed that 50% of its Transfix shares will be subject to forfeiture depending on post-closing share performance. By aligning compensation incentives with management, the SPAC said this structure represents G Squared’s long-term commitment to the investment.
The transaction also includes a minimum cash condition of $200 million. Read more.
