Gett, an Israeli based international taxi services company, is looking to a $1.3 billion initial public offering IPO, through an SPAC merger. Calcalist reported that Gett is close to merging with a special purpose acquisition company and getting a valuation of $1.3-1.5 billion. This is about the same as the company’s most recent valuation.
Gett joins a number of Israeli startups that have gone the SPAC route for its IPO. Most recently, Arbe Robotics, an Israeli startup that offers a 4D Radar solution for automobiles, completed its SPAC merger with Industrial Tech and began trading last week. And in September, Valens, an Israeli startup which provides high-speed connectivity solutions, completed a $1.16 Billion SPAC merger.
Investopedia explains that a special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Also known as “blank check companies,” SPACs have been around for decades. In recent years, they’ve become more popular, attracting big-name underwriters and investors and raising a record amount of IPO money in 2019.
Gett declares that it brings the “fragmented” world of ride-hailing companies and corporate fleets together on one platform, “optimizing our clients’ corporate ground travel needs, from booking and riding to invoicing and analytics, saving corporates both time and money while increasing employee satisfaction.”
Gett is a Ground Transportation Management (GTM) platform and B2B marketplace. The company says that spending in this field is estimated to exceed $100 billion globally. The company serves Serving more than a quarter of the Fortune 500 companies. Its platform organizes corporate fleet, ride-hailing, taxi, and limo providers in one place.
In January of this year, Gett completed a $115 million raise, adding $15 million to the $100 million that the company brought in back in June of 2020. At the time Gett said that it would use the proceeds to further accelerate the development of its SaaS platform and the company’s global expansion.
Dave Waiser, Gett Chief Executive Officer, said at the time, “We are on a journey to transform corporate ground travel and I’m delighted that investors find our model attractive. This investment will allow us to further develop our SaaS technology and deepen our proposition within the corporate ground travel market (both travel-related and local ones).”
“It has been an incredibly difficult period for the travel sector but we are pleased to have finished 2020 operationally profitable and on budget.”