Pomvom to enter Nasdaq at $125 million valuation with SPAC merger with Israel Acquisitions Corp
Pomvom to enter Nasdaq at $125 million valuation with SPAC merger with Israel Acquisitions Corp
The Israeli company, which develops experiential content to amusement parks and attractions globally, replacing operative physical solutions, is merging with the SPAC set up by Izhar Shay last year
Israeli company Pomvom, which develops experiential content to amusement parks and attractions globally, replacing operative physical solutions, and special purpose acquisition company (SPAC) Israel Acquisitions Corp, announced on Tuesday that they have agreed to merge at a total equity value for Pomvom of $125 million. The combined company will trade on the Nasdaq.
Pomvom serves many of the largest theme park and attraction operators globally, including parent companies Six Flags, Warner Bros., and Merlin Entertainment. Strategic long-term agreements signed in 2023 with Warner Bros. and Six Flags are expected to increase the number of partner sites for Pomvom to 47 sites by the end of 2024 — a 23% increase from its current 38 sites, and to accelerate growth in 2024 and onwards. Pomvom's launch of digital content across its partner sites is expected to leverage its new online platform and accelerate long-term growth.
Pomvom shares on the Tel Aviv Stock Exchange jumped over 30% on Tuesday, but the company's market cap is still a mere NIS 75 million ($20 million).
Pomvom revenues in 2022 were approximately NIS 192.7 million ($57.4 million). For the nine months ending September 2023 its revenues totaled NIS 165.1 million ($45.3 million), with revenues from its digital platform of NIS 57 million ($15.6 million), or 34% of total revenues, representing 139% growth compared to revenues during the same period in 2022 of NIS 23.8 million ($7.1 million), or 16% of total revenues.
Upon completion of the transaction, including the capital injection of at least $20 million from the business combination, the company aims to achieve a growth plan based on existing contracts and potential new wins in 2024 targeting at least a 30% increase in top-line revenues, with a 2024 expectation of reaching a positive adjusted EBITDA.
"The business combination agreement signifies a momentous step forward, aligning with the vision set when we took our SPAC public last year,” said Izhar Shay, Chairman of ISRL's Board of Directors. Shay, a prominent high-tech entrepreneur and investor who served in the past as the Minister of Science, tragically lost his son Yaron in Hamas’ October 7 attack. “We believe Pomvom's unique combination of technology, product innovation, and creative content design positions the company to capitalize on multiple growth opportunities in the Immersive Location-based entertainment experiences industry, both in the U.S. and worldwide. Collaborating together, we expect Pomvom to become a strategic partner of the largest amusement parks, attractions, and entertainment groups globally in coming years."
Yehuda Minkovicz, Pomvom's Founder and CEO: "This business combination is a significant milestone for Pomvom, reflecting the confidence of key figures in the hi-tech and financial industries in Israel and the United States. We look forward to working collaboratively to complete the transaction, with a shared objective of accelerating Pomvom's technology development and global presence in the coming years. I would like to extend my gratitude to Pomvom's and ISRL's teams for their efforts, dedication and perseverance, in advancing this merger despite the challenging times in Israel."
