Forge Global, a US-headquartered private securities marketplace backed by corporate investors Deutsche Börse, Munich Re and Wells Fargo, agreed yesterday to a reverse merger with special purpose acquisition company Motive Capital Corp.
The transaction will value the combined business at approximately $2bn and it is set to acquire the position on the New York Stock Exchange secured by Motive Capital in a $360m initial public offering in December 2020.
The deal will be boosted by $68.5m in private investment in public equity (PIPE) financing from trading software producer ION Group, Temasek and Adit Ventures in addition to a $90m backstop from funds representing Motive Capital’s sponsor, investment firm Motive Partners.
Forge runs a digital market where holders of shares in private companies can trade them. It also provides digital infrastructure for participants in private financial markets, as well as technology and services.
The company had secured over $150m in May this year from financial exchange operator Deutsche Börse and financial services firm Wells Fargo’s venture capital arm, Wells Fargo Strategic Capital, in addition to Temasek, Lun Partners Group and undisclosed other investors.
Reinsurance firm Munich Re, had joined Financial Technology Partners, Panorama Point Partners, Operative Capital, Peter Thiel, Tim Draper and Scott Banister to invest $85m in Forge Global through a series B round which closed in early 2019.
Forge Global CEO Kelly Rodriques said: “We firmly believe that everyone should be able to participate in the private markets, and we have strategically invested in the development of technology to operate what we believe to be an efficient and liquid market, connecting a large number of private companies, shareholders and investors.
“The confidence and commitment demonstrated by Motive Capital Corp, and other leading investors is a testament to our business model, the strength of our team and the huge market opportunity in front of us.
“With this transaction, we will be even better positioned to accelerate our mission and bring innovation to the private markets while delivering value to our shareholders.”
