BigBear.ai To Become Publicly Traded Company Via Merger With GigCapital4; Transaction Values BigBear.ai At ~$1.57B

Author: Benzinga Newsdesk | June 04, 2021 10:47am

BigBear.ai is a leader in data-driven decision dominance and advanced analytics with roots in the national security and defense community; rapidly expanding into the growing commercial sector
Provides end-to-end data analytics platform operationalizing artificial intelligence ("AI") and machine learning ("ML") at scale, delivering information superiority and decision support for customers in defense, intelligence, and commercial sectors
Global AI/ML market projected to grow from $58 billion in 2021 to $310 billion by 2026, at 40% CAGR
Transaction values BigBear.ai at a pro forma enterprise value of approximately $1.57 billion, implying 5.6x EV / FY2022E revenue multiple
Transaction expected to deliver approximately $330 million in net cash to the BigBear.ai balance sheet at closing
Proceeds will fuel commercial growth projects, expand sales and marketing, and fund research and development to accelerate product offerings and inorganic growth through accretive M&A
Projected 2021 revenue of $182 million and 43% 2021E – 2025E revenue CAGR, with positive and growing Adj. EBITDA and cash flow
Robust backlog of approximately $500 million contracted and near-term opportunities providing substantial growth visibility
Transaction includes $200 million oversubscribed convertible senior unsecured debt offering, convertible at $11.50/share, which includes investments by funds managed by affiliates of Fortress Investment Group, LLC ("Fortress"), Marathon Asset Management, LP ("Marathon"), and certain funds managed by Highbridge Capital Management, LLC ("Highbridge")
Investor call scheduled for Tuesday, June 8, 2021 at 8:30am ET

BigBear.ai ("the Company"), a leading provider of artificial intelligence, machine learning, cloud-based big data analytics, and cyber engineering solutions, and GigCapital4, Inc. (("GigCapital4", NASDAQ:GIGGU, GIG, GIGGW)), a private-to-public equity (PPE)TM entity also known as special purpose acquisition company ("SPAC"), announced today that they have entered into a definitive merger agreement that will result in BigBear.ai becoming a publicly traded company. The transaction is expected to be completed in the third quarter of 2021, at which time the combined company will be named BigBear.ai, Inc., and is expected to be listed on the Nasdaq. The transaction values the Company, which had $140 million in revenues in 2020, at an enterprise value of approximately $1.57 billion.

Posted In: GIG