•Infinite Reality, a company that takes companies into the metaverse, announced plans to go public through a special purpose acquisition company (SPAC).
• The transaction values the combined company at an equity value of approximately $1.85 billion and will make $128 million available to Infinite Reality.
• After payment of transaction expenses, the net proceeds will be used to continue building out infrastructure, expanding teams in Europe and Asia, accelerating marketing efforts focused on sports and entertainment, music broadcast and brands, as well as finance future acquisitions.
With its announcement to go public via a SPAC, Infinite Reality, the company that is revolutionizing the way businesses approach virtual reality, has taken its mission to the next level. By utilizing their technology that can transport companies into the metaverse — a virtual world where possibilities are endless — Infinite Reality strives to bring experiences like never before. The company looks forward to reaching even more stakeholders and investing in cutting-edge resources with their entrance into the stock market. Their impact on society is profound and with this news they promise greater advances in providing an immersive customer journey alongside valuable insights for businesses.
Details of the Acquisition
The transaction values Infinite Reality at $2.3 billion based on its pro forma equity value. The SPAC expects to make $1 billion available to Infinite Reality after the deal closes. Of that amount, $750 million will come from the PIPE investors while $250 million will come from cash held by the SPAC trust. In addition, current shareholders of Infinite Reality will be able to sell up to 5% of their shares through a secondary offering.
Purposes of Acquisition Proceeds
The acquisition of Infinite Reality by its leading rival is set to create a noteworthy shift in the industry. With a combined equity value of approximately $1.85 billion, the unprecedented transaction also provides Infinite Reality with an injection of much-needed capital; $128 million to be exact. The potential synergies from this business combination could be far-reaching and extremely beneficial for both parties involved. Furthermore, all eyes are now on whether this deal can create an interesting future for the industry as a whole.
With the payment of transaction expenses out of the way, tech company Big Tech Co is looking to put net proceeds towards their growing enterprise. This includes the development of more infrastructure, which could mean a range of possibilities from adding more computing power and storage or building out their team with members from locations in Europe and Asia. Additionally, Big Tech Co plans on investing in marketing efforts to strengthen its influence in sports and entertainment, music broadcast, and branding — no doubt in an attempt to make them stand out even further. Finally, they also have future acquisitions in mind; whether these are expansions into certain industries or perhaps even new startup companies that pledge loyalty to Big Tech Co (similar to satellite companies like Alphabet Inc.), only time will tell.
Benefits of Going Public for Infinite Reality
Going public has several benefits for both Infinite Reality and its investors. For one thing, it increases visibility and accessibility for investors since more people have access to purchase stock in publicly traded companies than those who have access to private companies’ shares. Additionally, going public improves liquidity for current shareholders who can now easily sell their shares if they want or need to do so without having difficulty finding buyers or buyers willing to pay fair value for those shares. Lastly, going public gives them access to additional capital which they can use to support their growth initiatives and expansion strategies.
Overall, going public through a special purpose acquisition company is a smart move by Infinite Reality because it provides them with additional capital they can use to support their growth initiatives while also providing increased visibility and liquidity for existing shareholders. With these resources at their disposal, they should be able to position themselves well in order to gain even more market share in the immersive media technology space over time. Intended Audience: Investors interested in learning more about why tech companies decide to go public.