Freightos Ltd., a digital platform for global freight-booking services, is set to go public through a merger with Gersher Acquisition Company.
As part of the transaction, Freightos has secured $80m in capital commitments to further scale the business and improve margins. The Freightos SPAC could have an implied pro forma enterprise value of about $435m.
With headquarters in Israel, Freightos operates as a digital marketplace for the international freight industry. The platform allows for real-time global rate comparisons and booking and shipping management services.
The company is expected to have $21m in revenue this year, said Freightos CEO, Zvi Schreiber, adding that the business has just began monetizing bookings. He projects Freightos will see $1.65bn in gross booking value in 2023.
Existing shareholders in Freightos include FedEx Corporation, SGX Group (the Singapore Exchange Limited), several major airlines, including Qatar Airways, IAG Cargo, the cargo division of International Airlines Group (an airline group whose brands include British Airways and Iberia), LATAM Airlines Group, Bob Mylod (Chairman of Booking Holdings) and financial investors such as Aleph and MoreVC.
Qatar Airways, M&G Investments and Composite Analysis Group Inc. are among the firms that made capital pledges to the new business. Indicating their confidence in the venture, existing and new large shareholders have signed lockup agreements spanning two years.
“Last year, $22 trillion worth of goods crossed borders, but we have all witnessed what happens when shipping doesn’t run smoothly, creating inventory shortages and increasing prices that challenge businesses and consumers globally. This presents a massive opportunity to digitize one of the last large offline industries,” said Freightos CEO, Schreiber.
The deal is scheduled to close in the second half of the year pending customary closing conditions. Oppenheimer & Co. served as financial adviser to Freightos, while DLA Piper LLP acted as legal counsel. Shares of the combined company are expected to trade on the Nasdaq under the symbol FROS.
The board of directors will include FedEx Logistics CEO Udo Lange and Guillaume Halleux, the chief cargo officer of Qatar Airways.
Source: Freightos
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