Michael Dell Seeks $575M IPO For Newly Formed ‘Blank Check’ SPAC

February 25 02:55 2021
Michael Dell Seeks $575M IPO For Newly Formed ‘Blank Check’ SPAC

The Chairman and CEO of Dell Technologies, Michael Dell is seeking to raise a minimum of $575 million for his new “blank check” acquisition companythrough an initial public offering.

MSD Acquisition Corp. is a newly organized blank check company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities,” said the company in a filing with the U.S. Securities and Exchange Commission. “Our acquisition and value creation strategy is to identify, acquire and—after our initial business combination—serve as a trusted, long-term partner to accelerate a company’s growth in the public markets.”

The new special purpose acquisition company (SPAC) aims to sell 50 million investment units at $10 each. Each will include one Class A share and 0.2 warrants to purchase a second one at $11.50 in the future, bringing the total value of the IPO to $575 million. MSD Acquisition will apply to list on the Nasdaq under the symbol MSDAU.

Michael Dell is serving as MSD Acquisition’s strategic adviser, with founding partners including executives from MSD Capital and MSD Partners, part of Michael Dell’s family business, which manage over $19 billion and employ approximately 110 people combined. The executives include CEO Gregg Lemkau, the CEO of MSD Partners, Chairman John Phelan, the co-founder of MSD Capital, and CFO John Cardoso, the chief investment officer of MSD Partners and MSD Capital.

We believe the combination of our affiliation with MSD Partners, the experience and network of our Founders, management team and Strategic Advisor, and the access to our board members’ expertise will be attractive to potential target businesses and will enable us to identify and execute a successful business combination,” said MSD Acquisition in its SEC filing. “MSD Acquisition will benefit from MSD Partners’ extensive investment experience across asset classes through different economic cycles, its proprietary relationship network, and its reputation in the marketplace as a preferred partner.”

MSD Capital and MSD Partners have agreed to acquire up to 5 million investment units at $10 each once the SPAC closes on its first merger deal. As regards the terms of MSD Acquisition’s relationship to Dell Technologies, the company stated that it will not invest in Dell Technologies’ principal markets.

The new SPAC also has no plans to combine in any way with the $92 billion Round Rock, Texas-based infrastructure giant. “We do not intend to pursue an initial business combination with a company that is in a business directly related to any of the principal businesses in which Dell Technologies operates,” said the company in its SEC filing.

We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target,” said the company.

Michael Dell currently ranks No. 18 on Forbes’ list of the richest people in the world with a net worth of $43.3 billion.

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