Airspan Networks has agreed to combine with New Beginnings Acquisition (NBA), in a deal that will create a company worth nearly USD 822 million. Upon close, sometime in the third quarter, NBA will be renamed Airspan Networks Holdings Inc, and will be listed on the New York Stock Exchange.
Under the deal with NBA, a special purpose acquisition company (SPAC), Airspan will hold about 75 percent of the combined company’s shares, assuming no redemptions from existing NBA shareholders. The new company will receive USD 166 in net proceeds, again, assuming no redemptions, including proceeds from a USD 75 million PIPE transaction. The cash will be used to push Airspan’s 5G revenue growth, to expand its product portfolio, and for working capital to fund increasing demand.
Airpan Networks is backed by SoftBank Group, Reliance Jio Infocomm and Qualcomm. The company said it believes the wireless industry is “poised for rapid” deployment of 5G technology, pointing to the recent USD 80 billion US C-band spectrum auction, which it said showed significant levels of investment from operators and new market entrants.
The transaction has been unanimously approved by the board of directors of both NBA and Airspan. Qualcomm and some other shareholders will receive equity in the combined company.
