CorpAcq Holdings and Churchill Capital VII announced today that they have entered into a definitive agreement for a business combination at a pro forma enterprise value of approximately $1.58 billion.
If approved, the transaction is expected to provide CorpAcq with up to $592 million in the cash held in Churchill VII’s trust (assuming no redemptions), which will help facilitate advancing CorpAcq’s strategy and accelerating its growth initiatives.
Upon closing, CorpAcq intends to list on the New York Stock Exchange.
Based in Altrincham, England and founded in 2006, CorpAcq said it has cultivated a reputation as a “preferred buyer” for founder-led small and medium-sized enterprises (“SMEs”) based on its “founder-friendly, management empowered value proposition and focus on investing for long-term performance.”
At deal completion, CorpAcq expects to have up to approximately $199 million in cash on its balance sheet, including $129 million from transaction proceeds, to improve liquidity and financial flexibility, accelerate growth in its core UK market and expand its pipeline of acquisition opportunities. Assuming no redemptions, existing CorpAcq shareholders will receive up to approximately $257 million in cash as part of the transaction and are expected to own approximately 46% of the Company post-close (again, assuming no redemptions).
Churchill VII’s sponsor has elected to forfeit 15 million founder shares and unvest an additional 12.1 million shares to align with its shareholders and the long-term value creation and performance of CorpAcq. Read more.
