Confirming earlier reports that a deal was imminent, Infinite Reality, a provider of immersive virtual experiences, and Newbury Street Acquisition announced late yesterday they have entered into a definitive business combination agreement. The transaction values the combined company at an equity value of approximately $1.85 billion, including approximately $1.7 billion attributable to Infinite Reality.
If approved, upon completion of the deal Infinite Reality stock, warrants and units are expected to list on the Nasdaq.
The deal is expected to provide up to $128 million growth capital to Infinite Reality and is conditioned on minimum cash of $50 million at closing.
With this fresh capital, iR said it will deliver a product suite that restores sovereign data ownership while accelerating and amplifying the value chain between audiences, creators, and brands in bespoke virtual environments.
All current iR shareholders are rolling their existing equity. Shareholders of Newbury will also receive a contingent value right as part of the transaction as a result of which they may be entitled to receive additional shares of the combined company under certain circumstances.
In connection with the transaction, non-redeeming Nubury stockholders and investors who subscribe for shares in a pending private placement will receive contingent value rights entitling holders to certain down-side price protection and a premium return, subject to trading prices of the merged company’s common stock during the 18-month period after closing. Read more.
