Plum Acquisition I signed a non-binding letter of intent for a business combination with cloud computing company Veea.
Founded in 2014, Veea offers edge-to-cloud computing with its VeeaHub smart computing hub products, multi-user devices that can replace or complement Wi-Fi Access Points, IoT gateways, routers, basic firewalls, network attached storage, and other types of hubs and appliances at user premises.
Under the terms of the LOI, Veea and Plum would become a combined entity, with Veea’s existing shareholders exchanging their shares in Veea for equity in the combined public company. Veea and Plum expect to finalize a definitive business combination agreement in the coming weeks, when additional details would be announced.
The news represents a turnaround in the SPAC’s fortunes, as Plum Acquisition I shareholders voted last month in favor of extending the SPAC’s deadline up to June 18, 2024. Redemptions hit around 12%.
That followed Plum’s announcement on June 15 that it planned to liquidate after former merger partner Sakuu, a battery manufacturer, terminated the merger agreemetn. However, the next day Plum said it “was approached with an opportunity to explore a business combination with another operating company.”
Plum I raised $300 million in a March 2021 IPO. Read more.
