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Pomvom Ltd., an Israeli technology company publicly traded on the TASE that develops experiential content for amusement parks and attractions globally, replacing operative physical solutions, is headed to a NASDAQ IPO. To that end, the firm entered a definitive business combination agreement at a total equity value for Pomvom of $125 million with Israel Acquisitions Corp, a publicly-traded special purpose acquisition company.
Investopedia explains that a special purpose acquisition company (SPAC) is a company without commercial operations and is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring or merging with an existing company.
Also known as blank check companies, SPACs have existed for decades, but their popularity has soared in recent years, explains Investopedia, because of how they enact an IPO: They basically form as a publicly traded firm first then raise the money to buy up a private company that wishes to go public, giving that company an accurate valuation before it begins trading.
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Big and successful startups like Google and Israel’s MobileEye would never do this for their IPOS because they are already so in demand they know their stocks will sell. But sometimes a startup overvalues itself and its IPO becomes a flop.
Founded in 2016, Pomvom provides an innovative end to end solution for automated photography through image recognition software. The company develops a pioneering image recognition AI platform, easy to integrate and use. The solution is capable of recognising individuals in real-time in a crowd and in various conditions, capturing their experience and automatically conducting personalised content distribution across vast groups of users.
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 — an impressive 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’s 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 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.
Yehuda Minkovicz, Pomvom’s Founder and CEO, said, “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 work 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.”
