A blank-check company set up by former New York Yankees all-star Alex Rodriguez is planning to merge with satellite communications provider Lynk Global Inc., according to people with knowledge of the matter.
Slam Corp., a special purpose acquisition company, signed a letter of intent to merge with Lynk, with the combined company expected to list on the Nasdaq stock exchange, according to the people, asking not to be identified as the deal hasn’t been made public. The company is expected to be valued at no less than $800 million upon the closing of the transaction, according to people.
Lynk Global is working on delivering satellite service to mobile devices from flip phones to the latest 5G handsets without the use of special equipment. So-called satellite-to-mobile services are receiving heightened attention because of their usefulness in remote areas that aren’t covered by regular towers.
Based in Falls Church, Virginia, Lynk Global has launched three commercial satellites since 2022 and counts wireless companies including Canada’s Rogers Communications Inc. among its partners, according to its website. In a statement with Lynk Global on Thursday, Rogers said it had completed Canada’s first satellite-to-mobile call and that it planned to begin service starting in 2024.
Lynk Global’s backers include Blazer Ventures, Unshackled Ventures and Global Space Ventures.
Elon Musk’s SpaceX also plans to offer satellite-to-mobile service. It won US approval last week to run tests on signals between mobile phones and its orbiting Starlink satellites.
Slam raised capital during the heyday of SPACs with the goal of finding an acquisition target in sports, media, entertainment, health and wellness, or consumer technology. It held talks with sports card maker Panini SpA before the deal fell apart in 2021, Bloomberg News reported.
About 60% of the SPAC’s investors opted to redeem their shares when it sought approval to extend a deadline to continue hunting for a target. The SPAC was left with about $200 million, compared with the $575 million that it raised in 2021.
This article was provided by Bloomberg News.