Social Capital Hedosophia Holdings Corp VI (NYSE:IPOF) is rumoured to be in talks with luxury fitness brand Equinox Holdings regarding a merger opportunity, according to a Bloomberg report. The report notes the transaction could value the combined company at $7.5 Billion or more. IPOF stock slightly dipped on the news however the stock remains relatively flat. Interestingly, the stock is trading at par with its offering price of $10 a share. The stock reached heights of $17.81 a share in early February before descending alongside the majority of the SPAC sector. With that being said, lets breakdown what investors need to know about the rumoured IPOF merger.
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Key details surrounding rumoured IPOF merger
- The report notes the companies are currently in talks regarding a blank check merger.
- Last month, Bloomberg reported Equinox Group had reportedly received interest from a Special Purpose Acquisition Company (SPAC) regarding a reverse merger opportunity.
- The deal could value the combined entity at $7.5 billion or more. To put this into perspective, this is slightly less than IPOE’s and SoFi’s combined valuation of $8.65 Billion.
- However, according to Bloomberg sources, the companies talks are not finalised and the deal may still fall through.
What we know about Equinox Group
Firstly, Equinox Group is a fitness company based in New York which operates multiple subsidiaries such as SoulCycle, Blink Holdings and The Yorkville Club. Equinox also opened their first Hotel in 2019, initiating their Hotel and Studio businesses. In the same year, Equinox also expanded globally by opening a luxury fitness club in the City of London. The company is currently a private entity, making it difficult for potential investors to look deeper into the companies financial health and positioning. Hence, if the rumoured merger does go ahead, the official press release will provide investors a better outlook as to the current performance alongside the future outlook.
Summarising the IPOF Merger Rumours
In conclusion, it’s important for investors to remember that the Bloomberg reports are yet to be confirmed by either IPOF or Equinox. With a valuation of $7.5 Billion, the merger would make it Social Capital Hedosophia’s second largest to date (based on combined enterprise valuation). We will continue to update our viewers on any update regarding the IPOF merger.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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