London-based IT firm Noventiq and special purpose acquisition company (SPAC) Corner Growth Acquisition have mutually decided to terminate their agreement to merge and list on the Nasdaq stock exchange, the companies announced on Thursday.
The decision to scrap the SPAC deal, which was initially set to make Noventiq a publicly traded company, comes amid unfavorable market conditions for SPACs and other contributing factors.
Noventiq, which specializes in cybersecurity and artificial intelligence technology, has opted to remain private for the time being. CEO Herve Tessler stated that this decision is in the best interest of the company given the current market environment.
SPACs, also known as blank-check companies, gained popularity during the pandemic as a way to quickly take private companies public by raising money through initial public offerings (IPOs). However, they have faced increased scrutiny from the U.S. Securities and Exchange Commission (SEC) in recent years, leading to a decline in their popularity.
Recently, another notable SPAC deal was terminated when Mountain & Co. I Acquisition and FC Barcelona decided not to proceed with their plan to list the Spanish soccer club’s digital media arm on the Nasdaq.
Noventiq and Corner Growth Acquisition’s decision reflects a broader trend in the market, where companies are re-evaluating the viability of SPAC mergers amid changing regulatory and market conditions.
