Rosecliff Acquisition Corp. (stock symbol; RCLF), a SPAC that raised $253 million when it went public in February 2021, has announced that it is going to merge with Gett, a company that "...focuses on streamlining a company’s ride-hailing, taxi and limousine booking options around the world into one platform."
Investor presentation: sec.gov
RCLF closed at $9.85 on Friday.
Gett Reaches $1.1 Billion SPAC Merger to Go Public
Company joins with ride-hailing operators to organize transportation options into one platform for corporate customers
By Amrith Ramkumar
Wall Street Journal
Updated Nov. 10, 2021 9:23 am ET
Gett is merging with a special-purpose acquisition company in a deal that would take the corporate-transportation platform public with a roughly $1.1 billion valuation, the companies said.
Started more than a decade ago as a ride-hailing competitor to Uber Technologies Inc. and Lyft Inc., Gett now focuses on streamlining a company’s ride-hailing, taxi and limousine booking options around the world into one platform. It says doing so saves customers time and money. Gett now joins with companies such as Lyft and Indian ride-hailing operator Ola to offer many different services.
London-based Gett is combining with Rosecliff Acquisition Corp. I, a SPAC backed by the investment firm Rosecliff Venture Management LLC. The Wall Street Journal previously reported that the two sides were nearing an agreement.
Gett is marketing itself as a practical solution for global companies to transport workers rapidly, particularly with many still working from home at least part-time during the coronavirus pandemic. The company now works with roughly a quarter of Fortune 500 companies, including Apple Inc. and Coca-Cola Co.
“It’s prime time for the unique solution Gett has,” Chief Executive Dave Waiser said.
The merger would mark a new step in Gett’s attempt to refocus its operations after closing its New York ride-sharing business Juno in 2019. Several years earlier, Mr. Waiser said it would eventually offer services such as on-demand manicures, housecleaning and pizza delivery.
At one point in 2019, the company was valued at about $1.5 billion and had raised several hundred million dollars in funding, including a roughly $300 million investment from auto maker Volkswagen AG .
Gett still operates ride-hailing services in markets such as Israel and London, but roughly 40% of its trips for corporate clients now come from third parties.
The SPAC deal would add to a string of blank-check mergers tied to the future of transportation. Southeast Asian ride-hailing and app operator Grab Holdings Inc. announced a roughly $40 billion megadeal in March, while Dubai-based Swvl Inc. said this summer it was valued at about $1.5 billion in its SPAC combination. Many other startups tied to electric vehicles, batteries, self-driving cars and flying taxis have also undertaken SPAC mergers in recent years.
Such deals are popular alternatives to traditional initial public offerings, in part because they allow early-stage companies to make business projections that aren’t allowed in IPOs. Startups can often also raise large sums of cash in SPAC deals.
As part of the combination with the Rosecliff SPAC, Gett is expected to raise a roughly $30 million private investment in public equity, or PIPE. PIPE investors are expected to include the SPAC creators and existing Gett investors. The Rosecliff SPAC has about $250 million on hand, though that total could shrink if investors withdraw money before the deal closes.
A SPAC is a shell company that raises money and lists on a stock exchange with the intent of merging with a private company such as Gett to take it public. After it announces a deal, the startup releases detailed financial information and regulators then review the merger. Once it closes, the private company replaces the SPAC in the stock market.
Rosecliff Venture Management has invested in several other startups through its various funds, including sneaker company Allbirds Inc., mattress seller Casper Sleep Inc. and private-jet charter firm Wheels Up Experience Inc., which went public through a SPAC deal.
Write to Amrith Ramkumar at amrith.ramkumar@wsj.com
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Appeared in the November 10, 2021, print edition as 'Ride-Booker Gett Aims for $1.1 Billion Value via SPAC.'
Gett Reaches $1.1 Billion SPAC Merger to Go Public - WSJ |
