Telecom firm Syniverse, SPAC M3-Brigade scrap $2.85 billion merger (updated)

M3-Brigade Acquisition II

09/02/2022 12:43

(Adds details from statement, background)
    Feb 9 (Reuters) - Telecom services firm Syniverse
Technologies and special purpose acquisition company M3-Brigade
Acquisition II Corp  MBAC.N  have mutually terminated their
$2.85 billion merger, the blank-check firm said on Wednesday.   
    M3-Brigade said that shareholder redemptions would have
exceeded the level required for the deal to close, highlighting
a recent trend that has deprived companies including BuzzFeed
Inc  BZFD.O  and Virgin Orbit  VORB.O  of millions of dollars of
cash.
    A SPAC is a listed company with no business operations and
seeks to merge with a private firm, taking it public in the
process. As a SPAC's target company is not known at the time of
its initial public offering (IPO), investors have the
opportunity to redeem their shares prior to a merger at the
original IPO price, typically a nominal $10 per share.
    "Nobody on the MBAC team is happy to have a failed deal and
rest assured that we will have alternative sources of financing
in hand for our next proposed combination," said  Donald Morgan
III, chief investment officer at Brigade Capital Management, one
of M3-Brigade's backers.
    

 (Reporting by Niket Nishant in Bengaluru;
Editing by Vinay Dwivedi)
 ((Niket.Nishant@thomsonreuters.com;))