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In a strategic move to enhance its position in the satellite technology landscape, AERKOMM Inc. (Euronext: AKOM), a frontrunner in providing broadband connectivity solutions across multiple orbits, has joined forces with IX Acquisition Corp (Nasdaq: IXAQU, "IXAQ"), a Special Purpose Acquisition Company (SPAC) with a focus on the technology, media, and telecommunications sectors. This definitive by Clarence Oxford
Los Angeles CA (SPX) Apr 01, 2024
In a strategic move to enhance its position in the satellite technology landscape, AERKOMM Inc. (Euronext: AKOM), a frontrunner in providing broadband connectivity solutions across multiple orbits, has joined forces with IX Acquisition Corp (Nasdaq: IXAQU, "IXAQ"), a Special Purpose Acquisition Company (SPAC) with a focus on the technology, media, and telecommunications sectors. This definitive Business Combination Agreement ("BCA") has also led to a successful US $35 million private placement.
The merger gives birth to AKOM Inc. ("AKOM"), with plans to transition AERKOMM's listing from Euronext/OTCQX to the Nasdaq stock exchange, adopting the ticker "AKOM." The companies aim to retain a secondary listing on Euronext, highlighting the global scale of their ambition.
The merger values AERKOMM at an adjusted enterprise value of US $200 million and includes up to US $200 million of earnout shares for AERKOMM's shareholders, contingent upon achieving specific milestones. The financing round consists of US $35 million in common equity PIPE (Private Investment in Public Equity), supported by both new and existing AERKOMM shareholders. This capital injection could expand prior to the merger's finalization, although the transaction does not hinge on a minimum cash threshold.
Upon completion, existing AERKOMM shareholders are expected to transition their stakes entirely, potentially owning about two-thirds of the newly formed AKOM. This equity shift depends on the final PIPE capital and the amount of cash retained in IXAQ's trust. The move to Nasdaq is anticipated to bolster AKOM's capacity to deliver its mission-critical, multi-orbit satellite broadband connectivity services.
With a projected closing in Q3 2024, the merger awaits the nod from the SEC, approval from IXAQ and AERKOMM shareholders, and other customary closing conditions.
AERKOMM has carved a niche in satellite technology, developing carrier-neutral and software-defined infrastructure that supports end-to-end satellite broadband connectivity for both the public and private sectors. Its collaboration with satellite partners and mobile network operators facilitates seamless connectivity from remote users and platforms to core infrastructure hubs.
The company's engagement spans various orbits, including LEO, MEO, GEO, and HEO, and its technologies have been deployed in the Aerospace and Defense sector. AERKOMM's strategic partnerships aim to cater to the burgeoning demand for multi-beam and multi-orbit satellite communication solutions.
Anticipated market growth for AERKOMM's target sectors-Aerospace and Defense and Civilian Telecommunications-is expected to surge from approximately $20bn to $60bn by 2030. With its profound technical expertise and innovative solutions, AERKOMM is poised to play a key role in this expansion.
Noteworthy advancements by AERKOMM include its high-throughput semiconductor glass antenna and interoperable universal terminals, which promise enhanced broadband connectivity across various sectors. Additionally, the company's commitment to virtualizing core network waveforms signifies a forward-thinking approach to satellite and constellation integration.
Louis Giordimaina, CEO of AERKOMM, and Karen Bach, CEO of IXAQ, expressed their enthusiasm for the merger, emphasizing the synergy between AERKOMM's innovative technologies and IXAQ's sector and financial expertise. This partnership is set to accelerate AERKOMM's growth in its key markets, leveraging its pioneering satellite technologies and strengthening its market position.
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