(Bloomberg) — SatixFy Communications Ltd., which provides semiconductors for satellites, has agreed to go public through a merger with a special purpose acquisition company.
The deal with Endurance Acquisition Corp. will give the combined company a pro forma implied equity value of about $813 million, according to a Tuesday announcement, confirming a previous Bloomberg report. The transaction includes a $29 million private investment in public equity, or PIPE, with participation from institutional investors including Sensegain Group and Antarctica Capital.
CF Principal Investments LLC, a Cantor Fitzgerald affiliate, is providing a committed equity facility of up to $75 million. The funding can be drawn on a need-to basis across three years and allows the company to incur less dilution, said Richard Davis, chief executive officer of the blank-check firm.
Israel-based SatixFy, founded in 2012, is a fabless semiconductor company providing products based on its own chipsets. The company, which also has offices in the U.S., U.K. and Bulgaria, designs chips, codes its software and builds its own modem and antenna products. Its customers include Telesat Corp., OneWeb, ST iDirect and Airbus SE.
Proceeds from the transaction will fund future growth of SatixFy including expanding its government relationships in the U.S. and the U.K., where it has initial contracts, said Yoav Leibovitch, chief financial officer of the chipmaker.
SatixFy plays in a unique market, said Endurance Acquisition’s Chief Technical Officer Graeme Shaw. “Big chip manufacturers don’t go after the satellite space and satellite players don’t make chips,” he said in an interview.
Endurance was formed by an affiliate of Antarctica Capital. It raised $200 million in an initial public offering in September, saying it intended to focus potential targets in the space and wireless technologies industries.
After a record run for SPAC IPOs that started in 2020, listings have fallen back to earlier levels. Blank-check company merger deals have also ebbed, with U.S. SPACs announcing 19 deals totaling $4.1 billion so far this year, according to data compiled by Bloomberg. That compares with 55 with a combined value of $42 billion during the same period a year ago, the data show.
(Updates with CEO’s comment in third paragraph)
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