A team of Foley attorneys is helping AST SpaceMobile, which is building a space-based mobile broadband network, go public through a business combination with New Providence, a special purpose acquisition company in a deal valued at $1.8 billion.
Midland, Texas-based AST & Science LLC said in a joint statement with New Providence Acquisition Corp. that the deal provides gross proceeds of about $462 million, including $232 million from New Providence and $230 million from a private investment in the public equity component.
Special purpose acquisition companies, or SPACs, are shell entities that raise money through an IPO for a future acquisition. The vehicles have become increasingly popular in recent years, comprising a substantial portion of the IPO pipeline.
AST SpaceMobile says that 51 percent of the global population lacks mobile broadband and 5 billion people face connectivity issues moving in and out of coverage. The company plans to have initial access to 1.3 billion consumers through the world’s existing cellular operators and says it can deliver service to existing phones without the need for specialized hardware.
Proceeds from the transaction are expected to be used to fund the first phase of the commercial space launch of AST SpaceMobile’s assets, the company says.
The Foley team includes Partners Paul Broude, David Kantaros, and John Wolfel, along with Senior Counsels Von Bryant and Garrett Bishop.
The deal is expected to close in the first quarter of 2021 and is subject to closing conditions and a sign-off by New Providence shareholders. The transaction has been unanimously approved by the boards of directors for both companies.