Innovid and ION Raise Additional $50m for IPO

In New York, connected TV ad delivery and measurement platform Innovid, and special purpose acquisition company (SPAC) ION have announced an additional $50m private placement of common stock from a group of PIPE investors. The transaction is expected to close in Q4 of 2021.

In June, Innovid announced it is to go public via a merger with ION, in a deal valuing Innovid at around $1.3bn. As a SPAC, ION is a newly formed company with no commercial operations, designed to raise cash in an IPO with the sole purpose of acquiring an existing company. SPACs make it possible for smaller companies to go public faster as funds have already been raised by the sponsors.

The additional $50m placement of common stock comes from a group of existing PIPE investors, and brings the aggregate amount of commitments to $200m. Private Investment in Public Equity (PIPE) deals involve the private placement of shares of an already listed company to a select group of investors, to help companies raise a large amount of money quickly. PIPE investors are usually hedge funds, mutual funds, and other large institutional investment companies, which buy company shares at a discounted price.

The combined company will operate under the Innovid name and will trade on the NYSE under the CTV ticker symbol. Zvika Netter (pictured left), CEO of Innovid, says the expanded investment further demonstrates a 'vote of confidence' from institutional investors in the firm's vision after a strong first half of 2021. Gilad Shany (right), CEO of ION, adds: 'We are pleased to see additional demand from top-tier investors as we approach the closing of our business combination with Innovid'.

Web site: www.innovid.com .