Singapore’s first special purpose acquisition company (spac) Vertex Technology Acquisition Corp (VTAC) has received shareholders approval for the business combination with pure-play live-streaming platform 17LIVE.
A resounding 95.53% of the spac’s shareholders voted for the proposed merger.
Upon completion of the business combination, VTAC will be renamed 17LIVE Group, trading under the new name from Dec 8 onwards. Trading of VTAC’s shares will be resumed on Dec 4.
Earlier today, VTAC announced that 62.53% of the company’s issued share capital have been redeemed.
17LIVE is the top live-streaming platform in Japan and Taiwan by revenue. It has presence in Hong Kong, Singapore, the US, the Philippines, India and Malaysia.
The platform generates revenue when these users acquire “virtual points” to buy and send virtual gifts to the live-streamers they support. Aside from typical live-streamers, the company cites V-Livers — or those who choose to appear on screen as animated avatars — as their next primary growth driver.
See also: What went wrong for 17Live?
The proposed business combination entails a consideration of up to $922.9 million. This consists of $800.8 million worth of consideration shares and up to $122 million in earn-out shares.
“We are confident that the group will continue to generate impressive growth in the future. Today’s outcome also demonstrates that spac is a viable alternative to the traditional IPO, and will add a new dimension to the way high-growth companies in the region can be funded to achieve their aspirations,” says VTAC chairman Chua Kee Lock.
“Going forward, as one of its key shareholders, we are thrilled to be part of 17LIVE’s promising future as we continue supporting the Group in reaching new heights,” he adds.
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17LIVE chairman and co-founder Joseph Phua says the cash investment that comes with the completion of the business combination with VTAC is a "game changer" for the company. “While we have been ebitda-positive since 2020, this new capital will give us further financial flexibility to fuel the next level of growth through various forms of expansion, and the opportunity to support the rising trend towards live streaming.
“With the successful completion of the business combination with VTAC and the resulting capital investment, I am confident about what the future brings with regards to our business and geographical growth,” he adds.
17LIVE is an existing company within the Vertex network’s portfolio. Vertex Asia Fund participated in the company’s US$40 million Series A round in 2017, while Vertex Growth Fund led its US$26.5 million Series D funding. Vertex Ventures also invested in Taiwan-based dating app Paktor founded by Phua.
