GigCapital, Inc. (NYSE: GIG), a Delaware corporation, is a blank check, emerging-growth company (known also as a Special Purpose Acquisition Corporation or “SPAC”), based in Palo Alto, California. The company was formed in October 2017 for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses, (“Initial Business Combination”) as soon as the appropriate opportunity is identified.
The company is sponsored by GigAcquisitions, LLC, and by Cowen Investments LLC. (www.cowen.com) and certain of its affiliates. GigAcquisitions is solely managed by GigFounders, LLC (www.GigFoundersGlobal.com) an advisory firm managed by the company's Executive Chairman of the Board and Chief Executive Officer, Dr. Avi Katz
GigCapital, Inc. seeks exceptional enterprise candidates for its business combination from the technology, media and telecommunications (“TMT”) sectors, which we believe represent tremendous growth and consolidation opportunities, both currently and well into the future. We intend to focus our efforts in TMT, although we may pursue business combinations in any business, industry or geographic location.
GigCapital, Inc. is built upon the significant experience and personal networks of its management team, board of directors, and sponsors to identify high performing enterprises that are led by ambitious and visionary management teams and to then quickly and seamlessly complete a business combination. Our collective management team and board of directors has a distinctive and successful record of growing privately-held and publicly-held companies, both through organic growth and through strategic merger and acquisition activities. This broad background of operational successes enables us to move well beyond the initial business combination and bring value to the combined company by working with the in-place target management team to implement strategies and tactics to drive the business to its full potential and to generate significant additional value for the years to come for all stakeholders.
Dr. Katz's previous endeavor was the successful launch of a bootstrapped company called GigOptix, Inc. (NYSE GIG) in 2007, and the transformation of the company to GigPeak, Inc. (NYSE GIG) through a public listing, substantial rollup of strategic M&A targets, and ultimately, the sale of the company for $250 million to Integrated Device Technology, Inc., (NASDAQ IDTI) in April 2017.
As a strong, value-added partner, GigCapital, Inc. can provide important benefits to a partner company, including
Swift listing as a public company on the NYSE and access to the Wall-Street research analysts and investment communities.
Meaningful cash infusion.
Access to continuous public financing methodology and instruments.
Broad experience in strategic transactions.
Contributing professional expertise and multi-level consulting.
Access to, and experience with, a global network of contacts and business partners.
In-depth experience in a multitude of industries and technologies.
Our management team and board members have been deeply involved in the various TMT sectors over the last four decades, predominantly in software services, cloud management, communications infrastructure, AI and “big data” analytics, semiconductor devices and systems, and optical and wireless communications. The team has a history of demonstrated successes, including a large number of company inceptions, large private and public funding activities, successfully partnering with the private and public investors community, execution of numerous mergers and acquisitions on a world-wide basis, leading initial and follow-on public offerings and the sale of companies.
The TMT market landscape has been well-defined over the last several years. There has been a significant increase in private equity and venture backed capital invested in TMT companies. PricewaterhouseCoopers (“PwC”) estimates that venture capital’s investment in U.S. TMT companies has increased from approximately $15 billion in 2010 to approximately $45 billion in 2016 (PWC MoneyTree Report, Q3 2017). Concurrently, the aggregate capital raised by technology-focused private equity funds has increased from approximately $5 billion in 2010 to approximately $20 billion in 2016 (Preqin, Aggregate Capital Raised by Technology-Focused Buyout and Growth Funds, 2006-2017 YTD).
Despite this large increase in investment levels, the number of U.S. TMT IPOs has decreased from ~ 40 IPOs per year from 2010-2014 to ~ 20 IPOs per year from 2015-2016 (PwC Global Technology IPO Review, Q2 2017). With TMT IPOs on the decline, investors have alternately sought liquidity through mergers and acquisitions (“M&A”) as demonstrated by the significant rise in TMT M&A activities from 2010 to 2016 (KPMG Insights, Technology, Media and Telecoms, March 14, 2017). Given these market dynamics, the company intends to seek primarily private companies that it believes would benefit from a public listing and greater access to capital by providing an attractive alternative investment opportunity that capitalizes on key trends impacting the capital markets for TMT companies.