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GIC invests in US-based technology firm Verra Mobility
SINGAPORE'S sovereign wealth fund GIC has invested in Verra Mobility, an Arizona-based firm that will be publicly listed upon a merger with Gores Holdings II, a special purpose acquisition company sponsored by an affiliate of the Gores Group.
On Thursday, GIC said in a press statement that it is among large institutional investors such as Hamilton Lane and Northwestern Mutual that have participated in a US$400 million private placement for the transaction.
The private placement was in addition to the US$400 million of cash held in Gores Holdings II’s trust account.
The consideration payable to the stockholders of Verra Mobility will consist of a combination of cash and shares of Gores Holdings II common stock.
Post-merger, Verra Mobility will have an anticipated initial enterprise value of about US$2.4 billion or 11 times the company’s estimated 2018 pro forma adjusted earnings before interest, taxes, depreciation, and amortisation of about US$219 million, the company said.
Verra Mobility develops technology-enabled solutions and is a portfolio company of Platinum Equity.
Upon completion of the transaction, including the private placement, Platinum Equity and other minority owners of Verra Mobility will hold about 42 per cent of the newly public Verra Mobility, subject to various purchase price adjustments.