The merger will enable the US-based firm to become a publicly-traded company with a listing on the NYSE
Forbes Global Media, a business media brand, has agreed to merge with Magnum Opus Acquisition, a special purpose acquisition company (SPAC), in a deal that values the combined entity at $630m.
Through the merger, the US-based firm will become a publicly-traded company with a listing on the New York Stock Exchange (NYSE).
Forbes is claimed to reach more than 150 million people globally. The business media company has 45 licensed local editions, which cover 76 countries.
Its brand extensions include real estate, education, and financial services license agreements.
On the other hand, Magnum Opus is sponsored by private investment firm L2 Capital.
Forbes CEO Mike Federle said: “Leveraging our iconic global brand, 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.
“With this transition into a publicly-traded company, Forbes will have the capital to accelerate growth by executing its differentiated content and platform strategy and fully realise the potential of our iconic brand.”
Post-merger, Federle will continue to lead the combined company in the same role.
The deal is expected to help Forbes in maximising its brand and enterprise values and use its proprietary technology stack and analytics for converting readers into long-term, engaged users of its platform.
Furthermore, the transaction will give Forbes gross proceeds of around $600m. This includes Magnum Opus’ cash held in trust account of around $200m and a private placement of ordinary shares of the combined company (PIPE) of $400m.
The PIPE investment has been committed by funds and accounts managed by top-tier institutional investors.
Forbes said that it will use the capital for further leveraging its digital transformation by using technology and data-driven insights to gain more deeply engaged audiences, and add recurring revenue streams.
Magnum Opus chairman and CEO Jonathan Lin said: “We are pleased to partner with the experienced management team to support initiatives to accelerate growth in high-quality and recurring revenue verticals. Forbes has expansive reach and is successfully broadening and deepening engagement through data-informed content curation that delivers what each Forbes user cares most about.
“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.”
The merger will be contingent on the approval of the shareholders of Magnum Opus and other customary closing conditions. Following these, the deal is likely to close either in late Q4 2021 or early Q1 2022.