Paris to Get its First Tech SPAC With 360 Disruptech Listing

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Mar 25 2021, 9:30 PMMar 25 2021, 10:45 PMMarch 25 2021, 9:30 PMMarch 25 2021, 10:45 PM

(Bloomberg) -- Paris is set to get its first blank-check company for technology investments, the latest sign European investors are joining the U.S. investment craze.

360 Disruptech EU is looking to raise 250 million euros ($295 million) in a private placement before its shares start trading in early May, the company told Bloomberg. It plans to sell as many as 25 million units, each consisting of one share and one warrant, at 10 euros per unit. Four warrants will give access to 1 share after the acquisition, it said.

The newly listed company will look for European technology companies with an equity value of 1 billion euros to 4 billion euros, it said. The special-purpose acquisition company is being formed by venture capital firm 360 Capital Partners, which was an early investor in fashion retailer Yoox and Withings, the connected device company acquired by Nokia. 360 Capital will continue to manage its own investments and will help the new company with due diligence, the group said.

“European SPACs are a quick and reliable solution to increasing needs for growth capital,” 360 Disruptech’s Chief Executive Officer Nader Sabbaghian said. 360 Capital general partners Fausto Boni and Francois Tison will also join as chairman and chief financial officer respectively.

While the number of European SPACs is still dwarfed by the U.S. -- which has had nearly 300 such listings this year -- it’s gaining traction and attracting U.S. sponsors. The Netherlands is the continent’s go-to destination, with three SPACs on the Dutch market and another listing imminently. Germany is runner up with three. Paris has one, French billionaire Xavier Niel’s 2MX Organic, which was Europe’s largest blank-check company when it was brought to market in December. The U.K. has proposed rules that would make it easier for the acquisition vehicles to list on the London exchange.

European tech companies are also getting increasing attention from U.S.-based blank-check firms. The co-founder of German startup incubator Rocket Internet SE has announced plans to list a SPAC in New York that will look for technology deals outside the U.S. In December, former Barclays Plc banker Makram Azar listed his acquisition vehicle to scout for European tech unicorns.