ACE Convergence Acquisition in an 8-K filing disclosed changes to its proposed merger with Tempo Automation, which was contingent upon Tempo’s merger with another company. That acquisition has been terminated.
As part of the transaction with ACE, Tempo Automation was to acquire Compass AC Holdings, under a separate agreement and Whizz Systems. However, Compass Diversified Holdings, the parent company of Compass, terminated the Compass deal with Tempo.
“ACE, Tempo Automation and Whizz are continuing to pursue a potential business combination involving ACE, Tempo Automation and Whizz, and expect to consummate such business combination in the third quarter of 2022,” the filing states.
There was no information in the filing as to whether or how much financial terms might change.
ACE sought a deadline extension in June and last month announced 2 million incentive shares available to PIPE investors who subscribe. A vote on the merger was postponed in May.
Since the deal was announced last October, ACE has upsized financing for the transaction to $200 million in convertible notes as well as a $100 million equity facility provided by an affiliate of Cantor Fitzgerald.
At announcement, the deal had a $919 million estimated post-transaction equity value.
Tempo is a software-accelerated electronics manufacturer. Read more.