MEKA Pioneer Corp lift up $ 287 million further strengthen the Latin American digital ecosystem.
The agreement introduces an innovative PSPC structure that better aligns incentives for all stakeholders involved.
After a successful IPO, MEKA will start engaging with top tech companies to build a tailor-made partnership model.
NEW YORK and MIAMI and SÃO PAULO and CITY OF MEXICO and BOGOTA and SAINT JACQUES and MONTEVIDEO, 01 October 2021 (GLOBE NEWSWIRE) – MELI Kaszek Pioneer Corp (MEKA), a SPAC created by Free market (Nasdaq: MELI) and Kaszek, today finalized their IPO, raising $ 287 million in a highly sought after fundraising and several times oversubscribed. After closing the transaction on October 1stst, the company will begin its search for leading technology companies in Latin America join the MEKA platform. This platform will facilitate the public listing of the partner company on the Nasdaq Stock Exchange, while simultaneously pursuing the active endorsement of MEKA’s experienced sponsors and tailor-made business development and knowledge sharing opportunities with Free market and the companies in the Kaszek portfolio.
MEKA brings together the original founding team of Free market as sponsors. Together, these frameworks have collectively generated more than 150 billion dollars of the value of the company, either by Free market, now the largest company by market capitalization in Latin America, or through the investment portfolio of Kaszek Enterprises, the first venture capital company in Latin America, with over 11 unicorns in their current portfolios.
The objective of Free market and Kaszek is to put the innovative structure of their PSPC at the service of a leading digital company in Latin America to assist them in their efforts to raise capital, business expansion and corporate governance. In doing so, the two organizations aim to foster a stronger internet ecosystem in the region that will drive economic growth, while generating increased returns for the entrepreneurs, investors and the limited partners involved.
Hernan Kazah, Managing Partner at Kaszek and Co-CEO of MEKA, highlighted the current favorable market conditions which are a central element of MEKA’s investment thesis, calling out the huge potential of companies in the consumer internet industry in Latin America, “The Latin American tech ecosystem is thriving. Many large companies, with world-class founders, have built strong businesses over the past decade and, with the latest digitization push of the pandemic, are now poised to leverage the MEKA platform to access public procurement with the support of Free market and Kaszek in the main streams of SOE work, trade agreements and operational support.“
Free market and Kaszek believe MEKA is the initial vehicle for the Pioneer SAVS platform through which they intend to make investments in late-growth companies. Pioneer PSPC offers an innovative structure that seeks to improve upon traditional PSPCs by combining terms of sale that better align incentives for all key stakeholders. The main features of these improved terms of agreement are:
- A performance-based Sponsor Promote structure that is only earned if the SPAC generates returns for investors, with no accumulated promotion equity for sponsors if the company does not trade above its IPO price .
- A mandate-less PSPC transaction that avoids additional dilution for the shareholders of the target company.
- A minimum of $ 50 million already engaged in the PIPE through a forward purchase contract with Free market and Kaszek.
- A longer than usual lock-up, 18 months, unless certain performance thresholds are reached.
In addition, the Pioneer structure offers partner companies unparalleled business opportunities in addition to improved sales conditions as a result of the unique nature of its sponsors. These additional benefits may include one or more of the following:
- Best practice toolkit and knowledge sharing initiatives of MELI and Kaszek portfolio companies to manage global investor relations and capital markets.
- Strong endorsement and reputation signaling during the transition from private fundraising to public fundraising to help bridge interactions between Latin American entrepreneurs and investors in global SOEs.
- A very selective base of long-term investors in the MEKA SPACs, who can become shareholders of the partner company. These investors are for the most part long-standing relationships between MELI and Kaszek, with a shared belief in the long-term investment thesis underlying the technological opportunity in Latin America.
- Extended operational alpha both Free market and the operations of Kaszek’s portfolio companies reflect the highest standards of excellence.
- Assistance with geographic expansion, leveraging Mercado Libre’s large regional footprint to help companies expand into new markets and industries.
- Tangible opportunities for synergies within the Mercado Libre ecosystem, including commercial, financial, operational and strategic agreements. These agreements can improve the growth prospects of the partner company by allowing it to access the distribution of Mercado Libre to the more than one hundred million people who access its platforms each year.
While commenting on the innovative structure of MEKA, Pedro Arnt, co-CEO of the company and CFO of Free market, made particular mention of these differentiating characteristics, “We believe that we are improving the traditional PSPC to create a ‘win-win-win’ formula for partner companies, PSPC investors and Free market shareholders or Kaszek LPs. We are able to accomplish this through the distinctive structure of the terms offered by Pioneer PSPCs, combined with the unique operational strengths that our sponsors bring to the project. Mr. Arnt also noted the possibility that MEKA will be the first of several PSPCs to be launched under Pioneer terms by Free market and Kaszek, “While we are currently fully focused on executing this first MEKA transaction to completion, we believe we could launch subsequent PSPCs one by one in the future, so that the Pioneer structure can become an alternative for IPO in Latin America. transactions.”
MEKA’s innovative pioneering structure has also helped it secure investments from a list of highly reputable companies, including some of the world’s largest asset managers, sovereign wealth funds, endowments and funds. technology-driven, which typically do not invest in PSPC.
While MEKA expects to move forward quickly in conversations with potential partners and to make progress on partnerships in the coming quarters, the company is given a two-year deadline to complete a business combination with its selected target.
The initial public offering was subscribed by Bank of America, Goldman Sachs, Allen & Co, and JPMorgan Chase.
On Free marketFree market is Latin America’s leading e-commerce and financial services technology company. It provides solutions that allow individuals and businesses to buy, sell, pay, advertise and ship products and services over the Internet. In addition to its e-commerce platform and Mercado Pago fintech, the company is also active in the following areas: Mercado Envios, Mercado Livre VIS (Vehicles, Real Estate and Services), Mercado Ads and Mercado Stores. Mercadolivre.com, which is the largest and most comprehensive marketplace in Latin America, has 75.9 million active users and over 12 million sellers, including a number of major brands. The site makes 29 sales per second. Mercado Pago, which has more than 62.1 million active payers, offers a fully-fledged financial technology platform with free accounts as well as payment and credit solutions. Founded in 1999 and currently present in 18 countries, Mercado Livre is the only company in Latin America in the top 10 of the best places to work in the world, according to the GPTW 2020.
Kaszek is Latin America’s largest start-up venture capital firm with a primary focus on partnering with and supporting extraordinary entrepreneurs on their seed, Series A or Series B funding rounds. continuously over the years with more capital and strategic and operational advice in their building sustainable and high impact technology companies.
The company, founded in 2011, has raised more than $ 2 billion in seven funds (five early stage funds and two late stage opportunities funds), invested in over 100 companies in sectors such as financial services, commerce, blockchain, education, healthcare , real estate and business software, and is the leading unicorn builder in the region, with 12 such companies in its portfolios: Nubank, Kavak, QuintoAndar, NuvemShop, Gympass, Bitso, Loggi, Creditas, NotCo, MadeiraMadeira, Konfio and PedidosYa.
All statements contained in this document about MELI Kaszek Pioneer Corp that are not historical or current facts are forward-looking statements. Our forward-looking statements include, without limitation, statements regarding our expectations, hopes, beliefs, intentions or strategies regarding the future or those of our management team. Further, any statement that refers to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumption, is a forward-looking statement. Forward-looking statements regarding MELI Kaszek Pioneer Corp involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of MELI Kaszek Pioneer Corp to be materially different from future results, performance or achievements. expressed or implied by forward-looking statements. Some of these risks and uncertainties are described in the “Risk Factors” and “Caution Regarding Forward-Looking Statements and Summary of Risk Factors” sections of MELI Kaszek Pioneer Corp’s registration statement on Form S-1 and the corresponding dated prospectus September 28, 2021, as filed with the Security and Trade Commission in accordance with Rule 424 (b) of the Securities Act of 1933. MELI Kaszek Pioneer Corp assumes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For more information:
Free Market: [email protected]
Kaszek: https://www.kaszek.com, or contact [email protected]