Two Warburg SPACs and JAWS Try for a 3-way Merger Deal

by | Feb 14, 2022

Scaling up for a potential $20 billion deal. In a rare, 3-way SPAC deal, two SPACs backed by buyout firm Warburg, Pincus (Warburg Pincus Capital Corp I-A, Warburg Pincus Capital Corp I-B –WCPA, WPCB) and Barry Sternlicht’s SPAC Jaws Estates Capital (JAWS) are in talks to merge with Allied Universal in a $20 billion deal. The SPACs are reported to be planning a $750 million PIPE.

Fun fact: Warburg already owns the merger target. Allied, which provides integrated security services, is already owned by Warburg. Warburg’s SPACs plan to target businesses with strong fundamental growth that could benefit from the firm’s experience, global presence, domain expertise, operational support, and extensive networks.

Multi-SPAC deals on the rise. Recent market volatility and the scarcity value of good merger targets is setting the stage for multi-SPAC deals. Declining warrant trends underscore investor concerns over whether mergers will come to fruition. Earlier this month, The Beachbody Co. (BODY) and at-home connected fitness company Myx Fitness Holdings LLC announced a 3-way merger agreement with SPAC Forest Road Acquisition Corp (FRX).

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