Social Leverage Acquisition I today announced that it has entered into a definitive business combination agreement with W3BCLOUD Holdings, a storage and compute infrastructure provider for Web3. The transaction values the combined company at an enterprise value of $1.25 billion.
Founded in 2018, W3BCLOUD provides storage and compute infrastructure to power Web3’s decentralized economy. With today’s transaction, W3BCLOUD aims to accelerate its investment in its platform to drive adoption by the blockchain developer community. Additionally, the company expects to benefit from emerging Web3 use cases such as Web3-enabled gaming, NFTs, DeFi, and the Metaverse, to further reinforce its position as a Web3 infrastructure provider and diversify revenue.
If the deal is approved, the company would receive up to $345 million in proceeds from the SPAC’s cash in trust, assuming no redemptions. Additionally, W3BCLOUD has received commitments for $40 million from ConsenSys, SK and others for new investments in connection with the transaction, and has an agreement with AMD for an additional equity investment of $10 million, each of which is subject to certain conditions. The parties also intend to raise up to $100 million post-announcement.
It is estimated that through this transaction, W3BCLOUD will receive approximately $445 million in cash to its balance sheet, which assumes $100 million of additional capital raised post-announcement, no redemptions and after expenses. Read more.
