Legato Merger II today announced that a stockholders meeting to vote on the proposed merger with Southland Holdings has been set for Feb. 14. Southland is a provider of specialized infrastructure construction services.
If approved, the combined company would have an implied pro forma enterprise value of $810 million.
Southland’s shareholders are expected to receive a combination of up to $498 million in cash and stock. The transaction is expected to add $220 million of cash to Southland’s balance sheet, less any redemptions of the SPAC’s shares.
Southland’s existing shareholders will receive $343 million of Legato II common stock and $50 million in cash at closing. In addition, Southland’s existing holders may receive an additional 10.3 million shares of Legato II common stock valued at $105 million, contingent upon achievement of specified Adjusted EBITDA targets. Read more.
