Vertex Technology Acquisition Corp (VTAC), a Special Purpose Acquisition Company (SPAC) supported by the state investor Temasek, has unveiled its plans to acquire the live streaming platform, 17LIVE Inc, in a transformative deal valued at up to S$925.1 million ($676 million). This landmark acquisition represents a significant milestone as the first instance of a SPAC listed in Singapore acquiring a private company since 2021.
The move comes following the Singapore Exchange’s decision to permit SPACs, also known as shell companies, to issue shares, positioning itself as a hub for such vehicles in the Asian market. VTAC, which conducted its initial public offering (IPO) in early 2022, raising approximately S$200 million, estimates the pro-forma equity value of this acquisition could reach as high as S$1.16 billion.
In conjunction with the acquisition, VTAC intends to secure additional funds through a private placement targeting institutional or accredited investors. Pending the requisite approvals, the deal is expected to conclude by the end of 2023, after which VTAC will be rebranded as 17LIVE Group Ltd and commence trading on the Singapore stock exchange.
17LIVE, under the leadership of Chairman Joseph Phua, stands to gain significantly from this listing as it sets its sights on expanding its footprint across Southeast Asia and the global market. In the first half of fiscal 2023, the streaming platform boasted over half a million average monthly active users and has successfully established a presence in critical markets, including Japan and Taiwan. The company reported revenue of $363.7 million in 2022 and has maintained profitability since 2020.
VTAC’s CEO, Jiang Hong Hui, expressed strong confidence in 17LIVE’s future prospects, emphasizing, “We see 17LIVE as a company at its inflection point, backed by a strong management bench.”
This strategic acquisition of 17LIVE by VTAC underscores Singapore’s growing significance as an attractive destination for startup investors, unicorns, and initial public offerings (IPOs). This groundbreaking deal not only highlights the potential of SPACs in the city-state but also underscores Singapore’s commitment to nurturing innovation and growth within the technology sector.
