- June 14, 2021
- 4 minutes read
SPAC: Online Grocer Boxed To Go Public In $900M Deal
Boxed, an online wholesaler of groceries and related products, is the latest tech startup going public through a SPAC merger.…
Boxed, an online wholesaler of groceries and related products, is the latest tech startup going public through a SPAC merger. It’s agreed to merge with Seven Oaks Acquisition Corp. [Nasdaq: SVOK] to become a public company.
- The merger deal values Boxed at approximately $900mn, precisely $887mn. It’s a solid valuation for a startup that reportedly rebuffed a $500mn acquisition offer (from grocery chain Kroger) in 2018.
- From its merger, Boxed will get $259mn of cash held in trust by Seven Oaks and then a $120mn PIPE round from a group of asset managers. The PIPE round includes the sale of equity ($32mn) as well as convertible bonds ($88mn).
- All in, Boxed will emerge with $334mn of net cash proceeds from its merger. That’s even more than the $244mn of venture funding it’s raised in total as a privately-held startup.
- Boxed is a “big box” grocery e-tailer, that is corporate-speak for wholesales. Its platform is focused on bulk-sized shopping, whereby it says customers order eight items on average at sub $100 prices.
- According to its investor presentation, Boxed had $187mn in net revenue in 2020, up slightly from $174mn in 2019. Its 2020 adjusted EBITDA was $18mn.
- Upon completing its merger, Boxed will start trading on the Nasdaq stock market.