Boxed, Inc and Seven Oaks Acquisition Corp. (NASDAQ: SVOK) have reached a definitive agreement for a business combination that will see Boxed become a public company. Boxed is a leading e-commerce grocery shopping platform that sells consumables to both households and retails customers while Seven Oaks Acquisition Corp is a publicly-traded special purpose acquisition company.
Following the merger, the new company will be called Boxed, Inc and will publicly trade in the U.S under a new ticker symbol. The company will remain under the management of Chieh Huang as the Chief Executive Officer. Gary Matthews, Chairman and Chief Executive Officer of Seven Oaks Acquisition Corp will become the Chairman of the Board of the new company.
“We are excited to take this important step forward to position Boxed for our next phase of growth,” Mr. Huang said. “This transaction will allow Boxed to capitalize on the tailwinds that e-commerce businesses are experiencing. This capital will also allow us to fund B2B growth, third-party marketplace expansion and drive our unique SaaS business. We look forward to partnering with the seasoned team at Seven Oaks as we leverage their operational and public company expertise.”
What the transaction entails
Under the new agreement, the two companies will merge to form a single firm with a combined equity value of around $900 million. The new company is also expected to get net cash revenue of around $334 million from of Seven Oaks’ cash in trust amounting to around $259 million and fully committed private placement financing amounting to $120 million.
The Boards of Directors of both companies have approved the transaction but the final deal will be sealed after approval by shareholders of both Boxed and Seven Oaks. In addition both companies will have to meet all required regulatory requirements and customary closing conditions.