Plum Acquisition I today filed a proxy and prospectus outlining its proposed merger with cloud computing company Veea. The deal has an enterprise value of approximately $281 million, prior to an anticipated $50 million private financing by Veea and assuming certain redemptions of Plum shares.
Founded in 2014, Veea offers edge-to-cloud computing with its VeeaHub smart computing hub products, which can replace or complement Wi-Fi Access Points (APs), IoT gateways, routers, basic firewalls, network attached storage, and other types of hubs and appliances at user premises. Cloud-managed VeeaHub products and its edge applications are at the core of Veea’s mission of championing digital transformation across many industries.
The transaction consideration will consist of newly-issued Plum securities determined based on a pre-money equity value for Veea’s outstanding equity securities and certain outstanding debt that will be converted into equity at the closing of approximately $194 million, excluding any money raised by Veea in its current financing .
In addition, following the closing, holders of Veea capital stock will have the right to receive up to 4.5 million earnout shares of the combined company’s common stock if certain trading price-based milestones are achieved during the 10-year period following the closing. Read more.
