Starry, a US-based internet access provider backed by media and internet conglomerate IAC, has agreed a reverse merger with special purpose acquisition company FirstMark Horizon Acquisition Corp.
Founded in 2014, Starry has built a high-frequency radio antenna system dubbed Starry Trident which is installed on the rooftops of radio towers and skyscrapers to deliver internet connection to its customers.
The merger is set to close in the first quarter of 2022 and will give Starry a pro forma enterprise valuation of $1.66bn. The combined entity will get the New York Stock Exchange spot taken by FirstMark Horizon when it floated in a $360m initial public offering in October 2020.
The deal includes $130m in private investment in public equity (PIPE) financing from investors including infrastructure construction firm Quanta Services, investment and financial services group Fidelity, ArrowMark Partners, Atreides Management, Tiger Global Management and affiliates of FirstMark Capital.
Starry will have $452m in cash after the transaction is completed and will use the proceeds to accelerate its growth and expand its presence across its home country, in addition to settling debt.
The company had completed a $100m round in July 2018 featuring undisclosed investors, having disclosed seven months before it had secured $31m.
The 2018 round took Starry’s total funding to $163m and it followed a $30m series B round two years earlier that included IAC, HLVP, FirstMark Capital, Tiger Global Management, KKR and Soros Fund Management’s Quantum Strategic Partners unit.
Chet Kanojia, co-founder and CEO of Starry, said: “This business combination with FirstMark will give us the necessary capital to expand our business and reach profitability. More importantly, it will allow us to continue to deliver for customers and execute on our mission.”
