EdtechX Holdings, the world’s only innovative investment platform focused on the future of education and work, said it listed a second SPAC IPO, EdtechX Holdings Acquisition Corp II (NASDAQ:EDTXU) on Nasdaq on Friday, December 11.
In a separate announcement, the group said EdtechX Holdings Acquisition Corp. II had consummated the sale of the full 1,500,000 units subject to the over-allotment option granted to the underwriters in connection with the initial public offering (IPO). The additional units were sold at $10.00 per unit, generating additional gross proceeds to the company of $15,000,000.
Each unit consists of one share of the company’s Class A common stock, $0.0001 par value per share, and one-half of one redeemable warrant with each whole warrant entitling the holder to purchase one share of Class A common stock at a price of $11.50 per share.
According to its filed prospectus, the SPAC intends to invest in companies in the private education, training and education technology sectors, with targets ranging from $400 million to $2 billion in enterprise value. Targets will be located predominantly in the US, and also in Europe and Asia (excluding China).
The listing follows the successful IPO of EdtechX Holdings Acquisition Corp I, the world’s first education technology special purpose acquisition company, in October 2018.
EdtechX Holdings is the leading European investment platform for edtech and has the backing of the specialist edtech investment bank IBIS Capital (100+ M&A transactions) and the EdtechX conference series.
EdTechX Holdings II is managed by the Franco-British duo of financiers Benjamin Vedrenne-Cloquet (CEO) and Charles McIntyre (chairman). The EdTechX Holdings II prospectus pioneers the inclusion of a “SPACs For Good” pledge from rhe pair to grant up to 4% of their SPAC founders shares to not for profit initiatives supporting the digitization of education and digital inclusion in education.
The “SPACs for Good” pledge is an invitation to other SPACs founders and sponsor teams to pledge a minimum of 1% of their founders shares (or $1million worth of shares) as a grant to support endowments and non for profit initiatives involved in education, health, environment, diversity and tech inclusion.
The co-founders, who hope to establish the “SPACs For Good” pledge as a market standard, are owners of both IBIS Capital, a London based investment bank focused on the education technology industry with more than 100 M&A transactions in the sector, and EdtechX Global, a thematic research and events platform curating the Future of Education and Work ecosystem globally.
The two bring decades of experience as investors, advisors and operators in industries undergoing global consolidation and digital transition, in particular, the media and education sectors – McIntyre was previously at PE firm Apax Partners and Vedrenne-Cloquet at Warner Media, formerly Time Warner.
EdtechX Holdings and its founders have a shared vision of identifying, growing, transforming, and investing in next-generation education and training companies. According to its prospectus, EdtechX Holdings intends to partner with owners and managers of growing, profitable and public market-ready companies that are well-positioned strategically to execute on the consolidation and digital growth opportunities available in the education and training sector globally.
The two founders are supported by an international and gender-balanced board of directors and advisors, which will bring connectivity to both the asset management industry and the education technology industry.
EdtechX board member Emma Davies was previously Head of Property and Infrastructure at The Wellcome Trust, the fourth largest charitable foundation in the world (with more than $30 billion in asset under management), from 2013 to 2016. From 2011 to 2013, she was the initial Chief Investment Officer of Big Society Capital, a social investment company founded by Sir Ronald Cohen, founder of private equity group Apax Partners, and was previously a partner at US hedge fund Perry Capital.
US bank Jefferies, the sole book-runner of the EdtechX IPO, has successfully IPOed 22 SPACS in 2020 to date. Macquarie Capital acted as the lead manager of the offering.
The education and training industry is estimated to be worth $5 trillion and is projected to grow by a 6% CAGR through 2025, driven by private spend and secular socioeconomic trends such as the rise of the middle class, demographics, upskilling etc, according to EdTechX’s 2020 Global Report. The edtech industry is estimated to be worth $186 billion and is projected to grow by a 17% CAGR through 2025
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