Gett, an Israeli based international taxi services company, has been forced to call off its planned SPAC merger with Nasdaq-traded special purpose acquisition company Rosecliff Acquisition ahead of an initial public offering (IPO). The merger was expected to give the company a $1 billion valuation, but several Russian funds currently under international sanctions are included in the planned investors.
The two companies issued a statement explaining, “As a result of current market conditions, Gett and Rosecliff have mutually agreed to terminate their previously announced business combination agreement.” No specific mention was made about the current conflict in Ukraine.
Gett also said that it will withdraw from the Russian transportation and delivery market “permanently, with exit details to be announced in due course.” The use of the word “permanently” is a very big deal here. So far, all the other companies that have sanctioned Russia, from Apple to McDonald’s, have said that their moves are temporary and will only last until the end of the current crisis.
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This officially makes Gett the first Israeli firm to have taken a hit because of the Russian invasion of Ukraine. Its IPO must be delayed, or even canceled, because of the Russian financial firms and individuals who have been formally sanctioned in the west as part of the campaign to punish and isolate Russia for the invasion.
Dave Waiser, the Founder & Chief Executive Officer of Gett, said, “After careful consideration and review, we felt that exiting the Russian market was the correct thing to do. I want to thank Rosecliff’s SPAC team and Mike Murphy, in particular, for their professional and committed support during this journey. I wish its experienced and driven team continued success.”
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 2021, 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.