Slam Corp. and Lynk Global, Inc. Announce Definitive Business Combination Agreement
- Lynk's sat2phone technology is compatible with any unmodified cellular device from 2G to 5G.
- The company has signed 36 full commercial contracts with partners to provide coverage in approximately 50 countries.
- The transaction values Lynk at a pre-money enterprise value of $800 million.
- None.
Insights
The announcement of Lynk Global, Inc.'s business combination with Slam Corp. and the subsequent public listing under the ticker 'LYNK' represents a significant strategic move in the telecommunications sector. Lynk's sat2phone technology addresses a critical gap in global connectivity, especially in remote and underserved areas. The ability to connect with existing 2G to 5G devices without modification is a considerable technological achievement, potentially disrupting the traditional telecom infrastructure model.
From an industry perspective, the partnership with 36 commercial contracts across approximately 50 countries illustrates a robust market interest and a clear path to revenue generation. The pre-money enterprise value of $800 million signals strong investor confidence in Lynk's business model and future growth potential. The capital raised will likely accelerate the deployment of additional satellites, which is crucial for expanding global coverage and service reliability.
Moreover, the use of licensed radiofrequency spectrum by mobile network operators (MNOs) without the need for hardware or software modifications on standard cellphones could position Lynk as a key player in the mobile communications ecosystem, offering a unique value proposition to MNOs and end-users alike.
The financial aspects of the business combination between Lynk and Slam Corp. are noteworthy for investors and market observers. An enterprise value of $800 million places Lynk among substantial players in the telecommunications industry. The transaction is structured to fund the expansion of Lynk's satellite constellation, which is expected to enhance its service offerings and market reach.
Investors should monitor the progression towards the closing conditions, including SEC filings and shareholder approvals, as these are critical milestones that can impact the transaction's success and the future financial health of the company. The anticipated capital raise through BTIG, LLC is another focal point, as it will provide the financial resources needed for Lynk's aggressive growth strategy, including satellite production and launch operations.
It is also important to consider the implications of the business combination on existing and potential competitors in the satellite communications market. Lynk's innovative approach could pressure traditional service providers to adapt or collaborate, potentially leading to market consolidation or strategic partnerships.
The potential for Lynk's technology to connect billions of people worldwide, including over two billion currently unconnected individuals, taps into a substantial market opportunity within the $1 trillion mobile wireless sector. The emphasis on compatibility with unmodified cellular devices from 2G to 5G and the intention to remain compatible with future generations of mobile devices, demonstrates a forward-thinking approach that aligns with evolving consumer technology trends.
Market research indicates a growing demand for reliable connectivity, especially in emerging markets and rural areas. Lynk's strategy to utilize a constellation of Low-Earth Orbit satellites to enable global communications could meet this demand and create a competitive edge. The company's progress in securing full commercial contracts in various countries reflects a successful go-to-market strategy that could be further bolstered by the capital infusion from the business combination.
Analyzing the broader impact, the expansion of global connectivity has the potential to drive economic growth, improve access to education and healthcare and support emergency response efforts. The societal benefits align with increasing global initiatives to bridge the digital divide, which could foster goodwill and regulatory support for Lynk's operations.
Lynk’s proven two-way sat2phone connectivity is compatible with unmodified 2G to 5G mobile devices
Lynk’s “cell-tower-in-space” satellites have been proven on all seven continents
Associated capital raise is expected to accelerate manufacturing and secure launches as well as support satellite design and operations
Charles Miller, CEO of Lynk, said, “With technology proven on all seven continents, and 36 full commercial contracts with partners that currently provide coverage to hundreds of millions of subscribers in approximately 50 countries, Lynk has the potential to provide continuous wireless connectivity to billions of people around the world, using the unmodified phones they use today.”
Alex Rodriguez, CEO of Slam, said, “Lynk seeks to connect the world by extending cell coverage everywhere. We are thrilled to announce this business combination agreement, which positions the combined company to capitalize on the massive,
Lynk has engaged BTIG, LLC to raise additional capital ahead of the closing of the business combination with Slam. Proceeds from the anticipated financing will be used to produce more satellites, secure launches, and support satellite design and operations. This is expected to include the continued development, manufacturing and launch of a constellation of Low-Earth Orbit satellites. The constellation will complement the three commercially-licensed Lynk satellites that are currently in orbit and is intended to enable global communications using radiofrequency spectrum licensed to mobile network operators (“MNO”) without hardware or software modification to existing standard cellphone technologies.
Charles Miller added, “Through our proposed business combination with Slam, we believe Lynk will be well-positioned to raise capital through several avenues. The capital we intend to raise will accelerate our growth as we execute our plan to launch many more ‘cell-towers-in-space’.”
Investment Highlights:
Lynk’s patented and commercially-licensed sat2phone technology is compatible with any unmodified cellular device from 2G to 5G, and is positioned to be compatible with future generations of mobile devices. The company’s technology has been tested and proven in over 25 countries, on all seven continents, and Lynk has signed 36 full commercial contracts with partners to provide coverage in approximately 50 countries.
Transaction Overview:
Under the terms of the business combination agreement, the transaction values Lynk at a pre-money enterprise value of
The boards of directors of Lynk and Slam have each approved the proposed Business Combination, the consummation of which is subject to various customary closing conditions, including the filing and effectiveness of a Registration Statement on Form S-4 (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”), and the approval of the shareholders of Lynk and Slam. Completion of the proposed Business Combination is expected in the second half of 2024.
Additional information about the proposed Business Combination, including a copy of the Business Combination Agreement, will be provided in a Current Report on Form 8-K to be filed by Slam with the SEC on February 5, 2024 (the “Current Report”). Additional information about the proposed Business Combination will be described in the Registration Statement relating to the proposed Business Combination, which Slam and Lynk Global Holdings, Inc. (“Topco”), a holding company formed to complete the Business Combination, will file with the SEC.
Advisors
BTIG, LLC is serving as capital markets advisor and JonesTrading Institutional Services LLC is serving as financial advisor to Lynk Global, Inc. Goodwin Procter LLP is serving as legal counsel to Lynk Global, Inc. Kirkland & Ellis LLP is serving as legal counsel to Slam Corp. DLA Piper LLP (US) is serving as legal counsel to BTIG, LLC.
About Lynk
Lynk is a patented, proven, and commercially-licensed satellite-direct-to-standard-mobile-phone system. Today, Lynk allows commercial subscribers to send and receive text messages to and from space, via standard unmodified mobile devices. Lynk’s service has been tested and proven in over 25 countries and is currently being deployed commercially, based on 36 MNO commercial service contracts covering approximately 50 countries. Lynk is currently providing cell broadcast (emergency) alerts, and two-way SMS messaging, and intends to launch voice and mobile broadband services in the future. By partnering with Lynk via a simple roaming agreement, a mobile network operator opens the door to new revenue in untapped markets, gives subscribers peace of mind with ubiquitous connectivity, and provides a potential pathway to economic prosperity for billions. For more information, visit www.lynk.world.
About Slam Corp.
Slam Corp. (Nasdaq: SLAM) is a special purpose acquisition company established by baseball legend, investor and Chairman and Chief Executive Officer of A-Rod Corp., Alex Rodriguez, and Founder, Managing Partner and Chief Investment Officer of Antara Capital LP, Himanshu Gulati. Slam intends to pursue investment opportunities with companies that have large and growing addressable markets, significant revenue growth, defensible business models and superior market share.
Additional Information about the Transaction and Where to Find It
This press release relates to the Business Combination involving Lynk, Slam, Topco, Lynk Merger Sub 1, LLC, a
BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, SLAM’S SHAREHOLDERS AND OTHER INTERESTED PARTIES ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY AMENDMENTS THERETO AND ANY OTHER DOCUMENTS FILED BY SLAM OR TOPCO WITH THE SEC IN CONNECTION WITH THE BUSINESS COMBINATION OR INCORPORATED BY REFERENCE THEREIN IN THEIR ENTIRETY BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE BUSINESS COMBINATION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE BUSINESS COMBINATION AND THE PARTIES TO THE BUSINESS COMBINATION.
After the Registration Statement is declared effective, the definitive proxy statement will be mailed to shareholders of Slam as of a record date to be established for voting on the Business Combination. Additionally, Slam and Topco will file other relevant materials with the SEC in connection with the Business Combination. Copies of the Registration Statement, the definitive proxy statement/final prospectus and all other relevant materials for the Business Combination filed or that will be filed with the SEC may be obtained, when available, free of charge at the SEC’s website at http://www.sec.gov. In addition, the documents filed by Slam or Topco may be obtained, when available, free of charge from Slam at http://www.slamcorp.com. Slam’s shareholders may also obtain copies of the definitive proxy statement/prospectus, when available, without charge, by directing a request to Slam Corp., 55 Hudson Yards, 47th Floor, Suite C,
No Offer or Solicitation
This press release is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the Business Combination or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. The Business Combination will be implemented solely pursuant to the Business Combination Agreement, filed as an exhibit to the Current Report, which contains the full terms and conditions of the Business Combination. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom.
Participants in the Solicitation of Proxies
This press release may be deemed solicitation material in respect of the Business Combination. Slam, Lynk, Topco, Merger Sub 1, Merger Sub 2 and certain of their respective directors and officers may be deemed participants in the solicitation of proxies from Slam’s shareholders in connection with the Business Combination. Slam’s shareholders and other interested persons may obtain, without charge, more detailed information regarding the names and interests in the Business Combination of Slam’s directors and officers in Slam’s filings with the SEC, including Slam’s initial public offering prospectus, which was filed with the SEC on February 24, 2021, Slam’s subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to Slam’s shareholders in connection with the Business Combination will be included in the definitive proxy statement/prospectus relating to the Business Combination when it becomes available. You may obtain free copies of these documents, when available, as described in the preceding paragraphs.
Cautionary Statement Regarding Forward Looking Statements
Certain statements made in this press release, and oral statements made from time to time by representatives of Slam, Topco and Lynk are “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by the use of words such as “estimate,” “projects,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “would,” “should,” “future,” “propose,” “potential,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the financial position, business strategy and the plans and objectives of management for future operations including as they relate to the Business Combination and related transactions, including the anticipated financing, pricing and market opportunity, the satisfaction of closing conditions to the Business Combination and related transactions, the level of redemptions by Slam’s public shareholders and the timing of the completion of the Business Combination, including the anticipated closing date of the Business Combination and the use of the cash proceeds therefrom. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Slam’s, Topco’s and Lynk’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of the parties, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
The forward-looking statements involve significant risk and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, among others, the following: (1) the inability of the parties to successfully or timely consummate the Business Combination, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the Business Combination; (2) satisfaction or waiver (if applicable) of the conditions to the Business Combination, including with respect to the approval of the shareholders of Slam; (3) the ability to maintain the listing of the combined company’s securities on Nasdaq; (4) the risk that the Business Combination disrupts current plans and operations of Slam or Lynk as a result of the announcement and consummation of the transactions described herein; (5) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (6) uncertainty of the costs related to the Business Combination; (7) changes in applicable laws or regulations and delays in obtaining, adverse conditions contained in, or the inability to obtain necessary regulatory approvals required to complete the potential Business Combination; (8) the possibility that Slam and Lynk may be adversely affected by other economic, business, and/or competitive factors; (9) the outcome of any legal proceedings that may be instituted against Slam, Topco or Lynk or any of their respective directors or officers, following the announcement of the Business Combination; (10) the failure to realize anticipated pro forma results and underlying assumptions, including with respect to estimated shareholder redemptions and purchase price and other adjustments; (11) risks related to domestic and international political and macroeconomic uncertainty, including the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240204812751/en/
Lynk Global, Inc.
Investors / Media
Tony DeTora
tdetora@lynk.world
Slam Corp.
Investors
Alex Jorgensen
ajorgensen@prosek.com
Media
Russell Sherman
rsherman@prosek.com
Source: Lynk Global, Inc.
FAQ
What is the ticker symbol for Lynk Global Holdings, Inc. after the business combination with Slam?
What is the enterprise value of Lynk as per the business combination agreement?
How many full commercial contracts has Lynk signed with partners?
What is the expected completion timeline for the business combination with Slam?
