Vertex’s SPAC to merge with 17Live

17Live’s Joseph Phua / Photo credit: 17Live

Vertex Technology Acquisition Corporation (VTAC), the special purpose acquisition company of global VC Vertex Holdings, has revealed a proposed merger with 17Live, a live social entertainment platform.

The deal, which values the combined firm at roughly S$1 billion to S$1.16 billion (US$730 million to US$846.8 million), will involve listing 17Live on the Singapore Exchange. The transaction is still subject to the approval of the exchange and VTAC’s shareholders.

VTAC’s statement mentioned that 17Live recorded revenue of US$363.7 million and adjusted EBITDA of US$15.8 million in 2022. It has also launched new business initiatives such as virtual live streaming service V-Liver, in-app games, and live commerce, which are expected to support future growth.

VTAC also said it will buy the entire issued and paid-up share capital of 17Live for up to about US$675.4 million in purchase considerations.

The deal involves the allotment and issuance of up to about 185 million new shares in VTAC at the issue price of US$3.65 per share to 17Live Holding. Of the total number of shares, 24.4 million will be issued when certain financial targets are hit.

17Live was founded in 2017 and was previously known as M17 Entertainment. The platform was built after the merger of Paktor Group with livestreaming firm 17 Media to form M17 Entertainment. Joseph Phua, the co-founder of 17Live, served as group CEO until August 2020.

17Live was slated to become a publicly listed company in 2018, but it canceled its listing the day it was supposed to go live due to “issues related to the settlement” of shares.

See also: M17’s ill-fated IPO: CEO reveals all

Currency converted from Singapore dollar to US dollar: US$1 = S$1.37.