ACE Convergence Acquisition Corp. [NASDAQ: ACEVU] disclosed that it has inked a merger agreement with Tempo Automation Inc. After the completion of the merger agreement, the merged firm will be renamed “Tempo Automation Holdings, Inc.” and shares of its common stock are likely to trade on The Nasdaq Stock Market, LLC (Nasdaq) under the ticker symbol “TMPO”.
ACE believed that Tempo Automation is the best fit with its charter of merging with a leader in industrial and enterprise information technology segments. The increasing complexity of electronics can’t be overemphasized, and Tempo’s use of software and AI in its manufacturing platform enables its customers to move at the speed of innovation.
Besides this merger deal, Tempo Automation disclosed that it has inked an agreement with Compass Diversified (NYSE: CODI), to purchase all of the outstanding equity interests of its majority-owned unit, Compass AC Holdings, Inc., the parent company of Advanced Circuits. In addition to this, Temp has also announced the acquisition of all of the outstanding equity interests of Whiz.
These interactive acquisitions are likely to further boost Tempo’s ability to power innovation with transformative design and manufacturing capabilities while offering rich new manufacturing data for its AI software. Tempo is altering electronics manufacturing with a distinctive smart manufacturing platform that utilizes software and data to speed up time-to-market and time-to-revenue for the top innovators in the world.
It has been disclosed that a business merger with ACE positions Tempo to speed up the data acquisition flywheel that powers its AI-directed digital manufacturing platform, and further compresses timelines for its customers. The business merger is likely to close in the first quarter of 2022, dependent on regulatory and stockholder authorization and other customary closing conditions.
The transaction indicates a suggested equity value of the merged company of nearly $919 million estimated post-transaction equity value based on current assumptions. The profit will be utilized to finalize the purchase of Advanced Circuits and Whizz, provide cash to the balance sheet, and pay fees for the transaction. The transaction is likely to offer $391 million in gross cash profit to the company.