The Nightcap: SPACs are Bullish on Autonomous Trucks

Embark Trucks, Inc. is a United States-based autonomous vehicle software-as-a-service provider focused exclusively on improving the safety, efficiency, and sustainability of the nearly $700 billion a year trucking market. Embark’s customers are carriers, who deploy Embark’s Driver software to enable self-driving trucks within their fleets. Embark also partners with shippers and carriers as part of its Partner Development Program to provide an end-customer voice and advise on the integration and scaling of autonomous trucks within their supply chain and fulfillment networks.

The blank-check company is discussing a deal that could value Bullish at as much as $12 billion, the people said, asking not to be identified discussing confidential information. The final valuation could change depending on the price of Bitcoin, the people said.

An agreement could be reached as soon as the next few weeks, the people said. The SPAC has already received interest from investors about taking part in a private investment in public equity transaction to help fund a deal. The size of the so-called PIPE could extend into the hundreds of millions of dollars, according to the people.

Shares of Far Peak jumped as much as 5.5%, a record intraday gain, in U.S. trading Wednesday. They were up 2.5% to $9.95 at 11:34 a.m. in New York.

Far Peak is led by ex-NYSE Group President Tom Farley, and David Bonanno, a former managing director at Daniel Loeb’s hedge fund Third Point LLC. It raised about $550 million in a New York listing in December to target companies in industries such as financial technology.

Bullish was launched in May by Block.one, a blockchain software company backed by billionaire Peter Thiel and hedge fund managers Alan Howard and Louis Bacon. If successful, a deal with Far Peak would mark a milestone for Block.one founder Brendan Blumer in establishing a decentralized crypto exchange.

Negotiations are ongoing, and there’s no certainty they will result in a transaction, the people said. Representatives for Block.one and Far Peak declined to comment.

Block.one, which also counts Hong Kong tycoon Richard Li and German entrepreneur Christian Angermayer among its investors, capitalized Bullish with a liquidity pool of about $10 billion in digital assets and cash. Its launch came shortly after the listing of Coinbase Global Inc., the largest U.S. crypto exchange, and amid the growing mainstream embrace of cryptocurrencies.

Bowlero Corp., an operator of bowling centers that sometimes include full-service bars and arcade games, is in talks to go public through a merger with blank-check firm Isos Acquisition Corp., according to people with knowledge of the matter.

Isos is in discussions to raise new equity to support a transaction that’s set to value the combined entity at about $2.6 billion, said the people. Terms aren’t finalized and it’s possible talks could collapse. Isos shares surged as much as 4.2% after Bloomberg News reported the talks.

Representatives for Bowlero and Isos declined to comment.

Bowlero, led by Chief Executive Officer Tom Shannon, operates centers under its own name as well as the AMF and Bowlmor Lanes brands. The New York-based company has more than 12,000 lanes at more than 300 venues that are visited by more than 28 million customers annually, according to its website. Bowlero also has owned the Professional Bowlers Association membership program since 2019. In March, the company announced a partnership to distribute BettorView content across its centers in states where online betting is legal, and in May Bowlero agreed to buy Bowl America Inc., an owner of 17 centers in Florida, Maryland and Virginia.

Bowlero has at least $870 million in debt, data compiled by Bloomberg show. “Performance is projected to improve more rapidly during the second half of 2021 as a vaccine becomes more widely disseminated with operating results approaching historical levels during 2022,” Moody’s Investors Service wrote in a December note.

Syniverse Technologies LLC, a messaging company that has been owned by Carlyle Group Inc. since 2011, is in talks to go public through a merger with M3-Brigade Acquisition II Corp., according to people with knowledge of the matter.

M3-Brigade is seeking new equity to support a transaction that’s set to value Tampa, Florida-based Syniverse at about $3 billion including debt, one of the people said. In March, Twilio Inc.agreed to invest as much as $750 million in Syniverse ahead of a potential public listing. Syniverse has about $1.9 billion in debt, data compiled by Bloomberg shows.

“The company’s operating performance, which was already weak entering 2020, deteriorated further, hurt by the pandemic,” Moody’s Investors Service wrote in a March note, citing a 13.3% decline in revenue in the 12 months ended Nov. 30. The ratings agency said it doesn’t expect Syniverse’s top line to return to pre-pandemic levels until 2022.

Carlyle and M3-Brigade representatives declined to comment. A Syniverse spokesperson didn’t immediately respond to a request for comment. Terms may change and as with any transaction that’s not yet finalized, it’s possible talks could fall apart.

Syniverse, led by Chief Executive Officer Andrew Davies, provides messaging and other software and services to clients such as Bank of America Corp., Twitter Inc. and T-Mobile US Inc., its website shows.