American publisher Forbes to become public company via $630m merger
Forbes plans to go public via a merger agreement with Magnum Opus Acquisition Limited
Forbes Global Media Holdings Inc announced on Thursday 26 August that it plans to go public via a merger agreement with Hong Kong-based firm Magnum Opus Acquisition Limited, a publicly traded special-purpose acquisition company (SPAC).
The deal, which values the combined companies at an implied pro-forma value of $630m, is expected to finalise in the fourth quarter of 2021 or early 2022, subject to customary closing conditions and shareholder approvals.
The deal will also enable the American publisher to “further capitalise on its successful digital transformation, using technology and data-driven insights to create more deeply engaged audiences and recurring revenue streams”, according to the company’s statement.
The transaction is expected to raise $600m in funding. Following the listing, Forbes shareholders will own 22% of the combined company.
Forbes CEO Mike Federle believes the transition into a publicly traded company will “see the business accelerate growth by executing its differentiated content and platform strategy”.
“Forbes has been executing a data-led platform strategy and is fast becoming the gateway for businesses, entrepreneurs and consumers to join the conversations and participate in the trends that are shaping the world today,” Federle added.
Jonathan Lin, chairman and CEO of Magnum Opus, echoed Federle’s statement by stating the acquisition will strengthen both enterprises to accelerate growth in recurring revenue verticals.
“The strategy fits perfectly with Magnum Opus’ strategy to support enterprises leveraging digitalisation to craft more tailored user experiences, and big-data analytics to create a positive feedback loop and multiple touchpoints with consumers,” Lin said in a company statement.