GCT Semiconductor and Concord Acquisition III announced today that they have entered into a definitive business combination agreement at an initial enterprise value of $461 million.
The target is a designer and supplier of advanced LTE, IoT and 5G semiconductor solutions. Concord III last week said it had entered into a non-binding letter of intent for a business combination “with a well-established semiconductor supplier.”
If approved, upon closing GCT is expected to list on the NYSE under the ticker symbol GCTS.
The proposed transaction has a pro forma enterprise value of $661 million, which includes 20 million performance-based earnout shares. The transaction is expected to provide the combined company with approximately $87 million of gross proceeds (assuming no further redemptions from Concord’s trust).
The SPAc earlier this week said it had signed an NRA covering 8.6M shares ahead of an extension vote. If approved, the measure would extend Concord III’s runway to Aug. 8, 2024.
Concord III raised $345 million in a November 2021 IPO with plans to acquire and manage a business in the financial services and financial technology sectors, however, redemptions ahead of a favorable extension vote in May removed about 88% of the trust. Read more.
