The deal will enable Boxed to become a public company and will be listed in the US under a new ticker symbol
Boxed to go public in $900m SPAC deal with Seven Oaks Acquisition. (Credit: Gerd Altmann from Pixabay)
E-commerce grocery shopping platform Boxed has signed an agreement to merge with Seven Oaks Acquisition, a publicly traded special purpose acquisition company, which would value the combined entity at nearly $900m.
Upon the closing of the transaction, Boxed would become a public company and will be listed in the US under a new ticker symbol.
The combined entity is expected to receive $334m of net cash proceeds from a combination of Seven Oaks’ cash in trust of nearly $259m, as well as a $120m fully committed private placement financing. Existing Boxed shareholders will not sell secondary shares in the transaction.
Established in 2013, Boxed is engaged in providing a user-friendly shopping experience for bulk consumables without the need for a “big-box” store membership.
The company will provide B2C and B2B customers with a simple basket-building shopping experience using its end-to-end e-commerce platform.
Also, the grocery shopping platform allows other companies to use its AI and robotics-driven e-commerce technology through SaaS offering.
The online retailer will continue to be led by Boxed CEO Chieh Huang and Seven Oaks Acquisition chairman and CEO Gary Matthews will serve as Boxed’s chairman of the board upon closing of the transaction.
Huang said: “We are excited to take this important step forward to position Boxed for our next phase of growth.
“This transaction will allow Boxed to capitalise on the tailwinds that e-commerce businesses are experiencing.
“This capital will also allow us to fund B2B growth, third-party marketplace expansion and drive our unique SaaS business. We look forward to partnering with the seasoned team at Seven Oaks as we leverage their operational and public company expertise.”
The transaction has been approved boards of directors of Seven Oaks and Boxed. It will require the approval of the stockholders of the two companies.
The deal is expected to complete in the fourth quarter of 2021, subject to other customary closing conditions, including the receipt of certain regulatory approvals.
Commenting on the deal, Matthews said: “Boxed is a leading e-commerce platform with significant competitive advantages and multiple opportunities to accelerate growth and drive value creation.
“We are confident that by supporting Chieh and the talented management team with our proven operating playbook, Boxed will continue to achieve success in a rapidly growing market.”