Asset managers Owl Rock Capital Group and Dyal Capital Partners on Wednesday agreed to merge and go public through Altimar Acquisition Corp, a blank-check company.
The combined company, to be known as Blue Owl Capital Inc, would be valued at about $12.5 billion managing over $45 billion in assets and will list on the NYSE after close of the deal first half of 2021.
The deal is expected to provide about $1.8 billion in gross proceeds, of which $275 million will be provided by Altimar through cash held in a trust and $1.5 billion will come from investors, including ICONIQ Capital, CH Investment Partners and Liberty Mutual Investments among others.
Altimar, which is a special purpose acquisition company, raised $250 million in its IPO in October this year.
A SPAC is a shell company which raises funds in an IPO with the aim of acquiring a private company, which then becomes public as a result of the merger.
SPACs have emerged as one of Wall Street’s most popular investment vehicles in 2020, with over 200 SPACs raising more than $70 billion.
Shares of Altimar are up 9.7%.
Source: Reuters.com